Some homebuyers may consider themselves to be "old pros" when it comes to mortgages but can quickly get confused when they begin researching refinancing options. While most refinancing options mimic their mortgage counterparts there are a few additional loan types to consider as well. Here is a reference guide to several mortgage refinance options that many lenders offer.

Fixed Rate Mortgage

When considering a mortgage refinance, a fixed rate refinance is exactly the same as a fixed rate mortgage loan. The terms can be anywhere from 10 to 30 years, with the vast majority being either 15 or 30 years. While 30 year fixed rate mortgages are attractive and thus the most popular, many homeowners can save quite a bit on interest charges by opting for a 15 year fixed rate instead. If you are considering refinancing your home to a lower interest rate and to pull more equity out of your home you will definitely want to look at both of your options.

Adjustable Rate Mortgage (ARM)

Adjustable rate refinances are also exactly the same or very similar to adjustable rate mortgages. In an adjustable rate mortgage, your interest will stay at an initial fixed rate that is between 1 and 3 points below what is currently being offered for 30 year fixed rates. After the initial grace period of generally one, three, five, or seven years, your interest rate and payment will rise to the percentage over the prime rate that your lender has set.

Combination Refinance

A combination refinance loan is used to combine an existing first and second mortgage onto one loan. These are very helpful at saving added interest and can even help save you from paying private mortgage insurance (PMI) in some cases. They are usually made up of three parts: the first mortgage, the second mortgage (a home equity line of credit or home equity loan), and existing home equity or cash down payment. These can be combined as an 80% first mortgage, a 10% second mortgage, and a 10% down payment. Though this is only one scenario of a combination loan, it is representative of how effective they can be.

Jumbo Refinance Loans

Jumbo refinance loans are for loans up to very high amounts, generally in the millions.

Cash out Refinance

Homeowners can utilize a cash out refinance loan to pull the equity out of their home that they have accumulated by payments and by the appreciation of the property. A cash out refinance gives the homeowner that equity amount in cash which they can use for whatever they wish.

Home Equity Line of Credit (HELOC)

A home equity line of credit is a revolving credit line that you have attached to your home, which serves as collateral. Think of it as kind of a mortgage credit card. Cash used from a home equity line of credit can be used for anything, but more savvy homeowners reserve it for large expenses such as education, medical bills, and home improvements and not for smaller expenses such as day-to-day purchases.