Common ways to refinance, in one place.
Five common refinance routes, each with different rules and trade-offs. Compare the categories here, then confirm current availability and eligibility with a licensed loan officer.
Find the one that fits.
Pick a route to see how it works, what changes, and which current rules need to be confirmed.
Conventional Refinance
A refinance evaluated under Fannie Mae or Freddie Mac rules. Limited cash-out and cash-out are separate transactions with different requirements.
How it works
- Loan amount must fit the current applicable conforming limit
- Fixed-rate and adjustable-rate options may be available
- An appraisal or an eligible automated valuation path may apply
- Mortgage-insurance treatment depends on the transaction and equity
What to compare
- LTV limits vary by occupancy, property type, units, and transaction
- Credit and debt-to-income findings depend on the full underwriting file
- Adding costs to the loan changes the new balance and reduces equity
- Cash-out rules are more restrictive than limited cash-out rules
Eligibility depends on
- Current Fannie Mae or Freddie Mac and lender requirements
- Documented income, assets, debts, credit, and occupancy as required
- Eligible property and valuation result
- Transaction-specific LTV, title, and seasoning rules
You want to compare a conforming refinance and your property, occupancy, loan amount, and file fit current investor rules.
How they compare.
Three common refinance routes, on the things that actually differ.
| Factor | Conventional | FHA Streamline | VA IRRRL |
|---|---|---|---|
| Existing loan | Eligible mortgage | FHA-insured | VA-backed |
| Appraisal / valuation | File-specific | With or without | Not required by VA |
| Income / credit review | Full underwriting | Path-specific | Lender may require |
| General cash out | Separate cash-out rules | No | No |
| Core program test | Investor eligibility | Current + net benefit | VA benefit + seasoning |
High-level federal and conventional distinctions for education — not a complete eligibility matrix or commitment to lend. Agency, investor, lender, and state requirements can change.
Compare a refinance scenario.
Estimate the principal-and-interest difference, cash costs, remaining balance, and simple break-even point, then compare written offers using the same assumptions.
Straight answers.
How much can I save by refinancing?
There is no reliable rate-drop shortcut. Compare the new balance, principal-and-interest payment, cash to close, term, and total costs over the time you expect to keep the loan.
How long does refinancing take?
There is no universal timeline. The program, documentation, appraisal or valuation, title work, underwriting conditions, and any applicable rescission period all affect closing.
What are the closing costs?
Your Loan Estimate lists lender charges, points or credits, required third-party services, government fees, prepaids, and initial escrow. Some costs may be financed only when the selected program permits it.
Can I refinance with imperfect credit?
Possibly. Credit review differs by program and lender, and a streamlined government option is not automatic approval. The current mortgage, payment history, income, debts, property, and proposed terms can all matter.
Should I refinance into a shorter term?
A shorter term commonly raises monthly principal and interest while potentially reducing lifetime interest. Compare offers with the same loan amount and full costs rather than relying on the term alone.
What exactly is a cash-out refinance?
The new mortgage pays off the current loan and adds eligible cash proceeds. It also raises mortgage debt and reduces equity, so compare it with other financing choices and consider the risk to the home.
This page is a general comparison, not a complete program guide, an offer, a rate quote, an approval, or a commitment to lend. Current agency, investor, and lender requirements control. Eligibility, pricing, costs, and terms depend on the selected program and complete application. LendWise Mortgage is an Equal Housing Lender.