What types of conventional refinances are there?
Three main types: 1) rate-and-term — change rate or term, no cash out; 2) cash-out — pull equity at closing; 3) limited cash-out — small amount of borrower funds back at closing for closing-cost reimbursement. Each has different LTV caps, pricing, and seasoning rules.
What this actually means.
Rate-and-term refinance: tighten payment or shorten term; can roll closing costs into the new loan; conforming caps at 95-97% LTV depending on program. Cash-out refinance: pull equity above existing payoff for any purpose; conforming caps at 80% LTV (1-unit primary), lower on multi-unit and investment; carries cash-out LLPAs. Limited cash-out: small refund (typically up to $2,000 or 2% of loan, lesser of) at closing without triggering full cash-out pricing. Subject to Fannie/Freddie guidelines.
Where this can move.
Rate environment, equity, credit, current loan type, seasoning, AUS findings (appraisal waiver eligibility), and program rules can change the answer.
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More conventional questions on Refinance.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.