• Traditional Refinance

    What's a traditional refinance?

    A low-cost conventional loan that may lower your monthly payment or let you pay off your house sooner.

    If you want to make your payments more comfortable and your home value is steady or has increased, you may be able to refinance your mortgage with a traditional refinance loan. Traditional loans are backed by Fannie Mae or Freddie Mac, and they are generally the lowest-cost refinance loans.

    Benefits of a Traditional Refinance

    • Lower your Monthly Payments - Refinancing into a lower interest rate could reduce your payment, leaving more money in your monthly budget. Traditional refinancing is also available with adjustable rates for even lower payments during the initial rate period than comparable fixed-rate loans.
    • Change the Term of Your Loan- If your current mortgage is a 30-year loan, you could shorten your loan term with the goal of building equity faster or paying off your home more quickly.  Our lenders offers traditional refinancing loans with terms of 10, 15 and 20 years, as well as the 30-year option.
    • Pay Less in Costs and Fees - Conventional refinance loans may cost less than FHA and VA loans, which typically have higher closing costs and monthly fees.

    Requirements and Qualifications

    • Credit History - Because conventional refinance loans are not backed by the government, you may need a higher credit score and more equity in your home to qualify. (If you don’t meet these criteria, Austin First Mortgage also offers FHA and VA refinance loans with less restrictive requirements.)
    • Home Equity - If you have less than 20 percent equity in your home, you’ll probably have to pay for private mortgage insurance – but even then, your total monthly payments are likely to be lower than with some of the costs associated with other loan types, such as the FHA monthly fee.
    • Market Value - To qualify for a traditional refinance, you home’s current market value must be higher than your current home loan balance. If your home has declined in value, refinancing options may be available to you under the government’s Home Affordable Refinance Program (HARP).

    Ready to get started? Our mortgage loan originators can answer all of your home refinance questions and help find the refinance home mortgage that's right for you.

  • Equal Housing Lender

    Conforming Fixed-Rate Loan Payment Examples
    30-year fixed: On a $150,000 loan for 360 months at 4.25% interest rate, monthly payments would be $737.91. No customer paid closing costs, APR is 4.25%.
    20-year fixed: On a $150,000 loan for 240 months at 4.125% interest rate, monthly payments would be $918.89. No customer paid closing costs, APR is 4.125%.
    15-year fixed: On a $150,000 loan for 180 months at 3.50% interest rate, monthly payments would be $1,072.33. No customer paid closing costs, APR is 3.50%.
    10-year fixed: On a $150,000 loan for 120 months at 3.25% interest rate, monthly payments would be $1,465.79. No customer paid closing costs, APR is 3.25%.

    Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice.

    The rates shown above are the sample rates for the refinance of a single-family primary residence based on a 60-day lock period. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your guaranteed rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors.

    To guarantee a rate, you must submit an application to Austin First Mortgage and receive written confirmation from a mortgage loan originator that your rate is locked. Application can be made online.

    Conforming Fixed-Rate Loans - APR calculation assumes a $150,000 loan with a 20% down payment and borrower-paid finance charges of 0.862% of the loan amount, plus origination fees if applicable. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Conforming rates are for loan amounts not exceeding $417,000 in the states we serve.