Debt Consolidation
This type of refinance is done by using the equity in your home to consolidate your other personal debt into one monthly payment. It provides you with an improved monthly cash flow, better tax advantages, fewer payments, and with no pre-payment penalty the ability to pay the entire debt off faster. Several different loan programs can be used on this type of refinance; your loan officer can assist you in selecting the program that best fits your needs.

Cash-Out
This type of refinance is used when individuals wish to pullout equity from their home with no specific purpose. The equity or cash taken from the home can be used at the borrower's discretion. Often, this type of loan is used to purchase another home or recreational property. It can also be used for investment purposes or to put a child through college. Sometimes the purchase of a car or motor home is the purpose. Additional tax benefits are available on the amount of money taken out. Your loan officer can help you select a program that best fits your needs. Loan-to-value limits may apply.

Rate/Term
This type of refinance is used when you are paying off your existing mortgage or perhaps paying off a first and second mortgage. Usually it is done to reduce the interest rate of the present loans, which reduces the monthly payments, or it can be used to reduce the term of the mortgage in an effort to pay off the existing mortgage faster. Rate/Term refinances are a wonderful way to improve your monthly payments or to help you own your home sooner. Some seasoning rules may apply if you have a second mortgage, but your loan officer will help you with the selection of a new program to meet your needs.