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Guide

Refinance Guide

Refinancing can lower your payment, shorten your loan, or put cash in your pocket. Here's how to know when it makes sense — and what to expect.

Types of Refinance

Rate & Term Refinance

The most common type. You replace your existing mortgage with a new one at a lower interest rate, a shorter term, or both. The goal is to reduce your monthly payment or pay off your home faster.

Cash-Out Refinance

You borrow more than you owe on your current mortgage and take the difference as cash. Common uses: home improvements, debt consolidation, college tuition. Your new loan balance will be higher.

Streamline Refinance

Available for FHA and VA loans. Simplified process with less documentation and no appraisal required in most cases. Designed to quickly lower your rate with minimal hassle.

The Break-Even Calculation

Refinancing costs money — typically 2%–5% of the loan amount in closing costs. The break-even point is how long it takes for your monthly savings to cover those costs. If you plan to stay in the home past the break-even point, refinancing usually makes sense.

Example: $4,000 in closing costs ÷ $200/month in savings = 20 months to break even. If you plan to stay 5+ years, it's a clear win.

When Does Refinancing Make Sense?

  • Rates have dropped at least 0.5%–1% below your current rate
  • Your credit score has improved significantly since you bought
  • You want to switch from an adjustable rate to a fixed rate
  • You want to eliminate FHA mortgage insurance by refinancing to conventional
  • You need cash for a major expense and have significant home equity

What to Expect

01

Apply

Same process as your original mortgage. We'll pull your credit, verify income, and review your current loan.

02

Appraisal

In most cases, your home will need to be appraised to confirm its current value.

03

Underwriting

The lender reviews everything and issues a final approval. This typically takes 1–2 weeks.

04

Closing

You'll sign the new loan documents. For a primary residence, you have a 3-day right of rescission before the loan funds.

See If a Refinance Makes Sense for You

We'll run the numbers on your current loan and show you exactly what you'd save — no obligation.

Explore My Options