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Refinancing
A refinance replaces your whole mortgage with a new one. Sometimes that’s exactly right. Sometimes it means giving up a rate you’ll never see again. We’ll tell you which.
Lower the payment
When rates have dropped below what you’re paying, or your credit has improved since you bought. We run the break-even so you know how long until the savings cover the costs.
Shorten the term
Moving from a 30-year to a 15- or 20-year loan pays the home off years sooner. The payment goes up; the total interest goes down by a lot.
Drop mortgage insurance
If you bought with less than 20% down and the home has appreciated, a refinance into a conventional loan can remove the monthly mortgage insurance.
Cash out
Borrow against your equity for a remodel, debt consolidation or anything else. Read the next section first if your current rate is low.
ARM to fixed
If your adjustable rate is about to reset, locking a fixed rate now removes the uncertainty. Worth a conversation 30 to 120 days before the reset date.
FHA to conventional
FHA mortgage insurance usually lasts the life of the loan. Once you have the credit and equity, moving to conventional ends it.
If your current rate is low, a refinance may be the expensive way to get cash
A cash-out refinance re-prices your entire balance at today’s rate. If you locked in during 2020 to 2022, that can mean paying more every month on the money you already had, just to access some new money. A home equity line sits behind your first mortgage and leaves it alone.
See the comparison