REFINANCE
Should You
Refinance?
Lower your rate, shorten your term, or tap into your equity. We'll help you determine if refinancing makes sense for your situation and guide you through the process.
Calculate Your Savings
See if refinancing makes financial sense for your situation.
Refinance Calculator
Should you refinance?
Current Loan
New Loan
Typical: 2-3% of loan amount
Refinancing Makes Sense
You'll break even in 16 months
New Payment
$1,724
/month
Monthly Savings
+$376
/month
Analysis
No obligation, no credit impact
Types of Refinancing
Different goals call for different approaches. Here are your options.
Rate-and-Term Refinance
Replace your current mortgage with a new one at a lower rate or different term. The most common type of refinance.
Best for: Homeowners who want a better rate or different term without pulling equity out.
Cash-Out Refinance
Refinance for more than you owe and receive the difference in cash. Use home equity for renovations, debt consolidation, or investments.
Best for: Homeowners with significant equity who need funds for a specific purpose.
Streamline Refinance
Simplified refinance for FHA, VA, or USDA loans. Reduced documentation and often no appraisal required.
Best for: Borrowers with existing government-backed loans looking to lower their rate quickly.
Cash-In Refinance
Bring cash to closing to pay down your loan balance. Can help eliminate PMI, qualify for better rates, or reduce your payment.
Best for: Homeowners who came into extra money and want to improve their loan terms.
When Refinancing Makes Sense
Common scenarios where refinancing can benefit you.
Rates dropped 0.5-1%+ below your current rate
A significant rate drop can save thousands over the life of your loan, even after closing costs.
→ Use our calculator to see your break-even point.
Your credit score has improved significantly
Better credit often qualifies you for better rates than when you originally got your loan.
→ Check your score—if it's 740+, you may qualify for the best rates.
You want to eliminate PMI
If your home has appreciated and you now have 20%+ equity, refinancing can remove PMI.
→ Get an estimate of your home's current value.
You have an ARM and want stability
Converting an adjustable-rate mortgage to fixed protects you from future rate increases.
→ Compare your ARM's potential rates to today's fixed rates.
You need to access equity
Cash-out refinancing often has lower rates than home equity loans or HELOCs.
→ Determine how much equity you have and what you'd use the funds for.
When to Think Twice
Refinancing isn't always the right move. Consider these factors.
Think Carefully If...
- You're planning to move within 2-3 years (may not recoup closing costs)
- Your credit score has dropped significantly since your original loan
- You're deep into your loan term and would restart the clock
- Closing costs outweigh the savings (check break-even)
- You can't afford the closing costs without rolling them into the loan
- Your home value has dropped below your loan balance
What Does Refinancing Cost?
Expect to pay 2-5% of your loan amount in closing costs. Here's the breakdown.
| Item | Typical Cost | Notes |
|---|---|---|
| Origination Fee | 0.5-1% of loan | Lender fee for processing the loan |
| Appraisal | $400-$700 | Required to confirm home value |
| Title Insurance | $500-$1,500 | Protects against title issues |
| Recording Fees | $50-$250 | County charges to record the new mortgage |
| Credit Report | $25-$50 | Cost to pull your credit |
| Flood Certification | $15-$25 | Confirms flood zone status |
No-Closing-Cost Refinance
Some lenders offer "no-closing-cost" refinances, but there's always a trade-off. Either the costs are rolled into your loan balance, or you pay a slightly higher rate. Run the numbers to see which option saves you more in your situation.
The Refinance Process
What to expect from application to closing.
Check Your Rate
Get a quote without impacting your credit. See your potential savings.
Submit Application
Provide income, asset, and property information. Similar to your original mortgage.
Appraisal
Lender orders an appraisal to confirm your home's current value.
Underwriting
Loan goes through final review. Respond promptly to any document requests.
Close & Fund
Sign the paperwork. Your old loan is paid off; new loan begins.
Typical Timeline: 30-45 Days
Streamline refinances may close faster
Refinancing FAQs
Common questions about refinancing your mortgage.
Refinancing typically makes sense when you can lower your rate by at least 0.5-1%, plan to stay in the home long enough to recoup closing costs (your "break-even point"), and your credit and financial situation have remained stable or improved. Use our calculator to see your specific numbers.
A typical refinance takes 30-45 days from application to closing. Streamline refinances (FHA, VA, USDA) can be faster since they require less documentation. The timeline depends on how quickly you provide documents, appraisal scheduling, and lender capacity.
The break-even point is how long it takes for your monthly savings to exceed your closing costs. For example, if closing costs are $6,000 and you save $200/month, your break-even is 30 months. If you plan to stay in the home longer than that, refinancing likely makes sense.
It's possible but more challenging. FHA streamline refinances have no credit score requirement if you're current on your existing FHA loan. For conventional refinances, you typically need 620+. The better your credit, the better your rate—so it may be worth improving your score first.
Paying points (prepaid interest) can lower your rate, but it only makes sense if you'll keep the loan long enough to benefit. Calculate how long it takes to recoup the points cost through the lower payment. If that's longer than you plan to keep the loan, skip the points.
Yes, you can typically roll closing costs into your new loan balance. This means you pay nothing out of pocket, but you'll pay interest on those costs over the life of the loan. Sometimes it's worth it to avoid depleting savings; run the numbers to decide.
Refinancing replaces your entire mortgage with a new one. A HELOC is a second loan that gives you a line of credit against your equity while keeping your first mortgage in place. If your first mortgage rate is already low, a HELOC may be better than a cash-out refinance.
Most lenders require at least 20% equity for the best rates and to avoid PMI. You can refinance with less equity (as low as 3-5% for some programs), but you'll pay PMI or a higher rate. For cash-out refinances, you typically need at least 20% equity remaining after the cash-out.
Ready to see if refinancing is right for you?
Get a personalized rate quote in minutes—no commitment, no credit impact.
NEXT STEP
Ready to Find Your Property?
Now that your financing is in place, our real estate team is ready to help you find the perfect home.