Conventional Refinance Loans

A Conventional Refinance Loan is a popular option for homeowners who want to replace their existing mortgage with a new one under improved terms, without the specific restrictions of government-backed programs like FHA, VA, or USDA. With a conventional refinance, borrowers may be able to secure a lower interest rate, reduce their monthly payment, shorten their loan term, or switch from an adjustable-rate mortgage to a fixed-rate loan. Because these loans are not insured by a government agency, they typically offer more flexibility in terms of loan size and property types, though they also have stricter credit and equity requirements.

One of the advantages of conventional refinance loans is the ability to drop private mortgage insurance (PMI) once you’ve built at least 20% equity in your home, which can significantly reduce monthly costs. Homeowners can also choose between a rate-and-term refinance—focused on lowering payments or changing the loan structure—or a cash-out refinance, which allows access to equity for major expenses. For borrowers with solid credit and stable financials, a conventional refinance loan offers a straightforward and cost-effective way to improve mortgage terms and maximize the value of homeownership.