A refinance usually comes down to two things: lowering what you pay each month, or pulling cash out of the equity. Which one you are after decides the program, the paperwork, and whether you need an appraisal. FHA goes down to a 500 score, and self-employed borrowers can qualify on deposits rather than tax returns.
Last updated August 2026 · reviewed by a licensed mortgage broker
★★★★★5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
500Min Credit Score FHA Floor
80%Cash-Out Max LTV Most Programs
56.99%Max DTI FHA With Factors
6-12Seasoning Months Typical
Home Loan Programs
Is Now the Right Time? What Homeowners Need to Know
Replacing your current mortgage with a new one sounds simple, but the reasons people do it vary quite a bit — and so do the programs that make the most sense for each situation. I’ve been helping homeowners in NJ, CT, and FL find the right loan since 2002. What we’ve found is that most people come to us for one of five reasons: they want a lower rate, they want to pull cash out of their equity, they want to get rid of FHA mortgage insurance, they’re changing from an adjustable rate to a fixed rate, or they’ve become self-employed and their last lender won’t touch them anymore.
The right program depends entirely on your goal, what your property is worth today, and how you document your income. Below we’ll walk through the most important program types, what they require, and who they work for. If you already know what you need, apply online or call 888.958.5382 and we’ll point you to the right program in the first conversation.
Quick note: Not every program requires perfect credit or a W-2 job. We work with self-employed borrowers, retirees, real estate investors, and borrowers with credit scores as low as 500 on certain programs. If a bank turned you down, that doesn’t mean there’s no option — it just means you need a different lender.
The Basics
How a Home Loan Replacement Actually Works
The process involves paying off your existing mortgage and replacing it with a new loan. The new loan can have a different interest rate, a different loan term, or both. If your home has gone up in value since you bought it, a cash-out transaction also lets you borrow against that equity — receiving the difference in cash at closing.
There are two broad categories. A rate and term refinance changes your interest rate, your loan term, or both — but the balance stays close to what you owe. A cash-out refinance replaces your loan with a larger one, and you keep the difference between the new loan amount and what you currently owe. Most homeowners use cash-out funds for home improvements, debt consolidation, college tuition, medical bills, or building an investment portfolio.
Refinance Type
Goal
Common Use
Rate & Term
Lower rate or shorter term
Reduce monthly payment or pay off faster
Cash-Out
Access home equity
Home improvements, debt payoff, investments
FHA Streamline
Lower rate on existing FHA
Faster process, no appraisal in most cases
VA IRRRL
Lower rate on existing VA loan
Veterans simplifying existing VA mortgage
HELOC
Revolving home equity line
Flexible access to equity over time
Refinance Home Loan — Replace Your Current Mortgage With Better Terms
General Requirements
General Refinance Requirements in 2026
Requirements vary by program, but here’s what lenders typically look at when you apply. These are general guidelines — your exact numbers will depend on the specific program and your property type.
Requirement
Typical Range
Notes
Minimum Credit Score
500 – 620+
FHA allows down to 500. Conventional typically starts at 620. Non-QM and bank statement Non-QM loans often start at 640.
Maximum LTV (Cash-Out)
Up to 80%
Most cash-out programs allow up to 80% of your home’s current appraised value. See our full cash-out refinance guide.
Debt-to-Income (DTI)
Up to 56.99%
Conventional stops at 49.99% when automated underwriting approves. FHA reaches 56.99% with compensating factors. Non-QM programs may be more flexible.
Seasoning on Current Loan
6 – 12 months
Most programs require you to have had your current mortgage for at least 6 months before switching lenders. FHA Streamline requires 210 days.
Home Equity Required
Varies by program
Rate-and-term programs go to 95% LTV. You get up to 97% only when Fannie Mae or Freddie Mac already owns your loan. Cash-out typically requires at least 20% equity remaining after closing.
Income Documentation
Varies
W-2 borrowers use tax returns and pay stubs. Self-employed borrowers may qualify with bank statements or a Non-QM program.
Questions about whether your equity or credit score is enough to qualify? Call 888.958.5382 or apply online — we’ll run a free review and give you an honest answer.
All Refinance Programs
Every Refinance Program We Offer
We offer programs for every borrower type — from straightforward rate-and-term to Non-QM programs for investors and self-employed borrowers. Here’s a quick overview of each.
A home equity line of credit gives you revolving access to your equity — draw what you need, pay it back, and draw again. Ideal for ongoing expenses or projects.
Replace your current mortgage with a larger loan and receive the difference in cash. A popular way to fund renovations, consolidate debt, or free up capital at a lower rate than most other borrowing.
For W-2 borrowers with 620+ credit and documented income. Fannie Mae and Freddie Mac guidelines apply. Great for dropping PMI or securing a lower fixed rate.
For existing FHA loan holders only. Faster process, reduced documentation, often no new appraisal required. Must show a net tangible benefit — a lower rate or payment.
Interest Rate Reduction Refinance Loan — the VA’s streamline option for existing VA loan holders. Minimal documentation, usually no new appraisal, lower funding fee.
Same approach as bank statement purchase loans, applied to an existing mortgage payoff. Qualifies on 12 or 24 months of deposits — no W-2s or tax returns required.
Broad Non-QM options for borrowers who don’t fit conventional boxes — credit events, unique income types, or investment properties with non-standard documentation.
Qualify on assets, cash flow, or bank deposits — not tax returns. Income and employment are not required or verified, making it ideal for retirees and high-net-worth borrowers.
Reasons to Make a Move
The Most Common Reasons Homeowners Make This Move
Every homeowner’s situation is different, but here are the most common reasons people come to us about making a change — and what we usually recommend for each one.
Lower their rate and monthly payment. When market rates drop or your credit score improves significantly from when you originally purchased, locking in a lower rate can save hundreds per month and tens of thousands over the life of the loan.
Access home equity (cash-out). Your home has likely gone up in value since you bought it. A cash-out loan lets you borrow against that equity for home improvements, college tuition, medical bills, debt consolidation, or building your investment portfolio.
Eliminate mortgage insurance (PMI or MIP). If you bought with less than 20% down on a conventional loan or with an FHA loan and your home’s value has increased, switching to a conventional loan can eliminate your mortgage insurance entirely — sometimes saving $200–$400 per month.
Switch from adjustable to fixed rate. If you have an ARM and your fixed period is ending, moving to a 30-year or 15-year fixed-rate mortgage locks your payment permanently and removes rate uncertainty.
Separation or divorce. If one spouse is keeping the home, a new loan removes the other borrower from the mortgage — a required step in most cases before the deed can be transferred.
Went self-employed after purchase. If you bought with a W-2 job and are now self-employed, your last bank may not work for your situation anymore. A bank statement loan or Non-QM mortgage may be the right fit.
The process is straightforward. Here’s what happens after you reach out.
1
Free ReviewWe start with a quick conversation about your goal, what your home might be worth today, your current rate and balance, and how you document your income. This takes 10 to 15 minutes and gives us everything we need to identify your options.
2
Program MatchWe identify which program — or programs — fit your situation and show you the rate and cost differences side by side. No pressure, just numbers.
3
Application & DocumentsYou apply online or over the phone. We collect your documents — whatever the program requires — and submit to the lender on your behalf.
4
Appraisal & UnderwritingMost programs require a new appraisal to confirm the current value of your home. The lender underwrites your file and issues a commitment. Some streamline programs skip the appraisal entirely.
5
ClosingYou sign the new loan documents at a title company or attorney’s office. The new loan pays off the old one, and if it’s a cash-out transaction, you receive your funds after the 3-day rescission period.
Refinance Where You Live
Refinancing in New Jersey, Connecticut & Florida
We are a licensed mortgage broker in all three states, based in Ridgefield, New Jersey. Loan limits, closing costs, and assistance programs differ by state — these pages cover the details where you live.
Here’s what a few of our clients said about working with Mortgage-World.com.
★★★★★
“Chris Luis is the BEST mortgage broker on this planet! If you’re looking to buy a home, definitely give him a call. Chris will go above and beyond to try to help you!”
— Tanya W.
★★★★★
“I had an opportunity to work with Chris when I did my refinancing. I would highly recommend his services to anyone. He was efficient, helpful and very prompt in responding.”
— Aurora T.
★★★★★
“Julia Luis has been very professional and has been very helpful during the process! Anyone looking for someone to assist them in their future adventures needs to have her on your side! Thank you for being there for me!!”
For a rate-and-term loan, conventional programs go to 95% LTV. You get up to 97% only when Fannie Mae or Freddie Mac already owns your loan. For cash-out, most programs cap at 80% LTV, so you’ll need at least 20% equity remaining after the new loan. FHA cash-out also caps at 80%. VA loans may allow higher LTVs for eligible veterans.
Can I refinance if I’m self-employed?
Yes. If your tax returns show lower income after deductions, you may qualify using 12 to 24 months of bank statements instead. Some borrowers also qualify through our Non-QM programs using asset depletion or DSCR if the property is an investment. We’ve placed Non-QM loans for self-employed borrowers across NJ, CT, and FL.
What credit score do I need to refinance?
It depends on the program. FHA loans allow credit scores as low as 500 on this type of transaction. Conventional programs typically start at 620. Bank statement and Non-QM programs generally require 640 and up. The higher your score, the better your rate and the more programs become available to you.
How long does the process take?
Most transactions close in 30 to 45 days from application. FHA Streamline and VA IRRRL can sometimes close faster since they require less documentation. If an appraisal is needed and scheduling takes time, that’s usually the longest single step.
Does refinancing hurt my credit score?
Applying results in a hard credit inquiry, which may temporarily lower your score by a few points. However, multiple mortgage inquiries within a 45-day window are typically treated as a single inquiry under FICO’s rate shopping rules — shopping several lenders at once has minimal impact.
Can I refinance an investment property or rental home?
Yes. Investment property cash-out is available through conventional and Non-QM channels. If you’re looking to pull equity from a rental property, a DSCR loan may allow you to qualify based on the property’s rental income alone — no personal income documentation required.
What are typical refinance closing costs?
Closing costs on a new loan typically run between 2% and 5% of the loan amount. They include lender fees, appraisal, title insurance, attorney fees, and prepaid items like taxes and insurance. In some cases, you can roll those costs into the loan or accept a slightly higher rate in exchange for a lender credit.
Do I lose the rate I have now?
Yes. Every refinance retires your current loan and starts a fresh one priced at today’s market, cash-out or not. The old rate does not survive that, and it catches people out because they are focused on the new payment rather than the one they already hold. Before you go any further, put your current rate next to what is available now. If the gap runs the wrong way, borrowing behind the first mortgage instead of replacing it is worth pricing.
How do I know if it is worth doing?
Compare what the refinance costs against what it saves each month, and see how many months it takes to get the costs back. If you expect to move or refinance again before that point, the arithmetic does not work no matter how good the new rate looks. Ask for that number specifically.
How soon after buying can I refinance?
Most programs make you hold the loan for a set period first, and how long depends on which program you are moving into and whether cash is coming out. That is why the closing date on your existing mortgage is one of the first things we ask for. It takes a minute to check, and it can settle the whole question before anyone pulls credit or orders an appraisal.
Whether you want a lower payment or money in hand, how long you plan to keep the house, and what the mortgage looks like today. A licensed loan officer will put the two routes side by side with the real costs attached, not just the rates.
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