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  Want to Refinance in VirginiaWhat is a refinance mortgage?
A refinance mortgage is a mortgage whose proceeds are used to pay off an existing mortgage secured by the home by paying off the existing loan and the execution of a new loan. The loan to value is based on the appraised value of the subject property regardless of the date the property was purchased and initially financed.
There are basically two types of refinance, rate/term refinance and cash-out refinance, each has a different result.
Rate/Term Refinance
The purpose of a rate/term refinance is to change to a lower interest rate or change the term of a loan without advancing new money on the loan. Closing costs can be rolled in. The borrower may receive a maximum 1% of the loan amount in cash at closing.
Cash-Out Refinance
The purpose of a cash-out refinance is to take cash out/away from the refinance by advancing new money on the loan. The cash taken from the refinance may be used for any purpose you choose (debt consolidation, credit card payments, vehicle purchases or the purchase of investment property etc…). Closing costs can be rolled in.
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