Program highlights
- Interest Rate Reduction Refinance Loan (IRRRL)
- 10% or greater disability waives the VA funding fee
- No minimum score when LTV is below 80% (conventional)
- FHA and VA 5/1 ARM
- Jumbo ARMs: 5/6, 7/6, and 10/6
- High balance
- 12 or 24 month bank statements (Non-QM)
What is a refinance?
A refinance replaces your current mortgage with a new one. People refinance to lower their rate, change their loan term, remove mortgage insurance, switch from an adjustable rate to a fixed rate, or take cash out. This page covers refinances that do not take cash out. For equity options, see our cash-out refinance and HELOC page.
Rate-and-term refinance
A rate-and-term refinance changes your interest rate, your term, or both, without taking cash beyond small allowable amounts. Common goals include:
- Lowering your rate when market rates or your credit have improved
- Shortening your term, such as moving from 30 years to 15 or 20, to pay the home off sooner
- Removing FHA mortgage insurance by refinancing into a conventional loan once you have enough equity
- Moving from an ARM to a fixed rate for long-term predictability
On a conventional refinance, there is no minimum credit score when your loan to value is below 80%. Jumbo, high balance, and Non-QM refinances are also available, including bank statement options for self-employed owners.
VA IRRRL
The Interest Rate Reduction Refinance Loan (IRRRL) is the VA's streamlined refinance for homeowners who already have a VA loan. It typically requires less paperwork than a full refinance, often without a new appraisal, and it is designed to deliver a clear benefit such as a lower rate or moving from an ARM to a fixed rate. If you have a VA disability rating of 10% or greater, the funding fee is waived.
FHA streamline refinance
An FHA streamline refinance lets current FHA borrowers refinance into a new FHA loan with reduced documentation, often without a new appraisal. It needs to provide a net tangible benefit, such as a lower payment. FHA mortgage insurance still applies, so we also check whether moving to conventional makes more sense if you have built equity.
Does refinancing make sense?
Refinancing has closing costs, so the key question is how long it takes for your savings to cover those costs, and whether you plan to stay in the home longer than that. We calculate your break-even point with real numbers. We will also tell you when refinancing does not make sense, even if it means waiting.
What you need to apply
- Your current mortgage statement
- Homeowners insurance declarations page
- Recent pay stubs and W-2s or tax returns, unless you qualify for a streamline
- Two months of bank statements
- Your VA Certificate of Eligibility for an IRRRL, which we can usually request
How we help in Austin
Many Central Texas homeowners bought or refinanced at a time when their options were more limited, and plenty of FHA borrowers in Austin have built enough equity to reconsider mortgage insurance. We review your current loan, run the break-even math, and give you a straight answer. We refinance homes in all 12 of our licensed states.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
Refinance: common questions
When does refinancing make sense?
Refinancing usually makes sense when the savings from a lower rate, shorter term, or removed mortgage insurance will cover your closing costs well before you expect to sell or refinance again. We calculate your break-even point using your actual loan, costs, and plans. If the math does not work yet, we will tell you and help you watch for a better time.
What is a VA IRRRL?
The VA Interest Rate Reduction Refinance Loan is a streamlined refinance for homeowners who already have a VA loan. It typically requires less documentation than a full refinance and often no new appraisal. It must provide a clear benefit, such as a lower rate or moving from an adjustable to a fixed rate. Veterans with a 10% or greater disability rating do not pay the funding fee.
How does an FHA streamline refinance work?
An FHA streamline refinance lets current FHA borrowers refinance into a new FHA loan with reduced documentation, often without a new appraisal or full income verification. It must provide a net tangible benefit, such as a lower payment. FHA mortgage insurance still applies, so if you have built equity, we also compare a conventional refinance that may remove it.
Can I refinance from FHA to conventional to drop mortgage insurance?
Often, yes. If your home value has risen or you have paid down your loan, you may have enough equity to refinance into a conventional loan. With 20% or more equity, conventional loans typically do not require mortgage insurance. Even with less, private mortgage insurance can usually be removed later. We compare the total cost before recommending the switch.
How long does a refinance take?
Timelines vary by loan type and how quickly we receive documents and the appraisal, if one is needed. Streamline refinances like the VA IRRRL and FHA streamline often move faster because they need less paperwork. We give you a clear timeline when you apply and keep you updated at each step, so you know what is next.