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  • Overview
  • Changing Your Term or Payment
  • Converting Revolving HELOC to Fixed Rate Loan
  • Get Rid of a Balloon Loan
  • Tips for Refinancing
  • Loan Options

Overview

There are many reasons why you should look into refinancing your second mortgage, including decreasing your monthly payments, lowering your interest rate and reducing or eliminating Private Mortgage Insurance (PMI). It can also help you change the term of your loan if your financial situation has changed, as well as help you get cash back at closing. In some cases, refinancing can also allow you to consolidate your first and second mortgage into a single loan.

Changing Your Term or Payment

Let us help you explore your options and learn if refinancing is an option for you.

 

Converting Revolving HELOC to Fixed Rate Loan

Get the home equity loan you want and predictable monthly payments with a fixed rate loan.

 

Refinance a Balloon Loan

Convert a balloon loan and enjoy more manageable monthly payments.

 

Tips for Refinancing

Everything you need to know about refinancing with our helpful tips.

 

Loan Options

Refinancing your home can save you money. Learn how to refinance today.

Changing Your Term or Payment

At BBVA Compass, we understand that life changes and so do your mortgage needs. Refinancing could help you decrease your monthly payment amount by extending the amount of time it will take overall for you to pay off your loan. It may also permit you to increase your payments and shorten the length of the repayment.

Converting Revolving HELOC to Fixed Rate Loan

Get the cash you need with the right home equity loan.

If you have a home equity line of credit (HELOC), and you believe the variable interest rates are too high, you can take advantage of the BBVA Compass HELOC "fixed rate option". It allows you to fix the rate and payment on a portion or all your outstanding balance.

While a HELOC allows you to withdraw money as needed typically paying only interest on the outstanding line amount, you may want a more traditional loan with more predictable monthly payments. One way to get a fixed rate is to refinance your HELOC into a home equity loan.

Get Rid of a Balloon Loan

Discover how you can pay your balloon loan.

Ask us how we can refinance your Balloon Loan into more manageable monthly payments. A Balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate. In addition it may have a fixed or a floating interest rate.

Tips for Refinancing

'Should I refinance?' It's a question many homeowners ask themselves when interest rates go down. But is refinancing your mortgage really the best option? Here are some tips to consider before you do.

Question 1: Is this a good time to refinance?

Yes, it is still a good time to refinance, for certain people -- it depends on variables like the borrower's financial situation, the purpose of the refinance and the dollar value of the loan.

In general, if you can make up your closing costs within two years, refinancing could be a good idea. Loan value is one of the primary factors in the equation.

For loan amounts above $300,000, refinancing in today's market may make sense if the borrower's current interest rate is over 6.25 percent. For loan values of $200,000 to $300,000, borrowers with interest rates of 6.5 percent or higher may benefit. For loan values of $150,000 to $200,000, those with rates of 6.75 percent or higher may benefit, and those with loan amounts under $150,000 may need a current rate of 7 percent or higher in order for a refinance to make sense.

Question 2: How much can refinancing cost?

Refinancing costs vary, and can range from $2,000 or less, to $20,000 or more, depending on factors like loan value and the amount of discount points associated with the loan. Borrowers should always be mindful of closing costs. Sometimes they may be tempted to pay a lot in points to get a lower rate, but this may not be the best way to go.

Question 3: What advice would you give to a homeowner who is thinking of refinancing?

Get the process started. If you're in the market to refinance, get all of your paperwork in to the lender. That paperwork should include verification of all income and assets, such as tax returns, W2s, paycheck stubs and bank statements.

Rates fluctuate. If you're looking for a particular interest rate, your window of opportunity can be as little as a couple of hours. By getting all of your paperwork in to your lender, you'll be positioned to get pre-approved for the loan so you'll be ready to lock your rate if rates reach your target range.

Loan Options

Home Equity Loans and Home Equity Lines of Credit

Make your home’s equity work for you. Did you know your home may be one of your biggest assets?

Learn More

Mortgages subject to eligibility, collateral, underwriting and approval, including credit approval.