100 percent mortgage refinancing and how it can work for you

What it means

100 percent mortgage refinancing lets you replace your current home loan with a new one equal to the property’s value, reaching a 100% loan‑to‑value ratio. It can free up monthly cash flow, simplify multiple debts, or reset your term for a clearer path to payoff.

Benefits and use cases

When used thoughtfully, this approach can be a flexible tool. Some borrowers, including qualified VA homeowners, may access options at or near 100% LTV, though terms vary by lender.

• Consolidate high‑interest balances into one predictable payment.
• Finance essential repairs or energy upgrades that raise long‑term value.
• Switch loan types or move from adjustable to fixed for stability.
• Extend or shorten the amortization to match life changes.

Key considerations

Because you start with little equity buffer, rates and fees may be higher, and market dips can put you at risk of negative equity. Build a strong credit profile, verify income, and compare closing costs; even a small rate difference matters at high LTV.

Shop multiple quotes, ask about cash‑out limits, and model best‑ and worst‑case scenarios so the refinance supports your long‑term goals.