10 · Loan Program

Refinancing

Lower your rate, shorten your term, or access your equity — the right refinance strategy depends on your current loan, your goals, and how long you plan to stay.

Who Should Consider a Refinance

Homeowners whose current rate is 0.75% or more above today's market and plan to stay in the home through the break-even point
Borrowers who want to eliminate FHA mortgage insurance by refinancing into a conventional loan once they reach 20% equity
Homeowners who need to access equity for renovations, debt consolidation, education, or investment capital through a cash-out refinance
Buyers who originally took an adjustable-rate mortgage and want to lock into a fixed rate before adjustment periods begin

How It Works

From first conversation
to closing day.

Break-Even Analysis

Tanya calculates your break-even point: how many months of lower payments it takes to recover closing costs. If you plan to stay longer than the break-even, the refinance makes financial sense.

New Appraisal

An appraisal confirms current market value and establishes your loan-to-value ratio, which determines the rate you qualify for and how much equity you can access.

Underwriting

Your income, credit, and debt are re-verified. For cash-out refinances, most programs allow up to 80% LTV. VA and FHA have streamline options that waive income re-verification.

Closing

Refinances carry closing costs of 2–5% of the loan amount, which can typically be rolled into the new loan. A 3-day right of rescission applies on primary residence refinances.

Key Benefits

What makes this program
work for the right borrower.

Rate-and-Term: Lower Monthly Payment

Reducing your rate by 0.75–1% on a $400,000 loan saves approximately $200 per month — more than $72,000 over the remaining loan term.

Cash-Out: Access Equity Without Selling

A cash-out refinance unlocks the equity built in your home, providing capital at mortgage rates — typically far lower than personal loans, credit cards, or HELOCs.

Streamline Options for FHA & VA

FHA Streamline and VA IRRRL programs reduce income verification, waive the need for a new appraisal in some cases, and expedite the process for existing government-backed loans.

Requirements Snapshot

Quick-reference guidelines.

Minimum Credit Score	620 for conventional rate-and-term; 640+ for cash-out; VA/FHA streamlines may have lower thresholds
Equity Requirement	Rate-and-term: 3–5% equity; Cash-out: 20% equity remaining post-close (80% max LTV)
Seasoning	Most programs require 6–12 months of on-time payments on the existing loan before refinancing
Closing Costs	2–5% of loan amount; can be rolled into new loan balance in most cases
VA/FHA Streamline	Existing VA or FHA loan required; must result in a lower rate or more stable loan type; no cash-out permitted

Edge Home Finance, LLC • NMLS #891464 • 5860 Baker Road, Minnetonka, MN 55345

Equal Housing Opportunity Lender. This is not a commitment to lend. All loans subject to credit approval.

Licensed in: Georgia and Florida • NMLS Consumer Access: www.nmlsconsumeraccess.org • Licensing & Disclosures

Equal Housing Opportunity