Blog Category: Recapture Period

August 30th, 2016
August 30th, 2016

Can I Refinance To A 15-Year Loan From A 30-Year Loan and Keep My Payment The Same?

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In a word, no. This is not possible. I wrote a blog back in 2011 in another feverish refinance market showing the numbers on how you can’t shorten the term of your loan from 30 to 15 years without increasing your monthly mortgage payment. Those numbers bear repeating in the current interest rate climate and are below. Check out this hypothetical example: Read More

Categories: Refinance , , ,

October 26th, 2020 calculator
October 26th, 2020

VA Refinance Recoupment Period

With a VA loan, the United States Department of Veterans Affairs requires that the closing costs on a VA refinance be recouped in 36 months or less. If the recoupment period is over 36 months the loan will be rejected.

In other words, the refinance closing costs divided by the monthly savings has to be 36 or less, signifying the number of months in the recoupment period.

For example, if the closing costs on a VA refinance are $3,000 and the monthly savings on the refinance are $400 a month, the recoupment period is 7.5 months because $3,000 divided by $400 a month in savings = 7.5 (well within 36 months). Read More

Categories: interest rates, Loan Process, Loan Types, mortgage, Refinance, VA Mortgage , , ,