Refinancing
Lower your payment, tap into your home's equity, or drop mortgage insurance. Let's do the math and see if refinancing makes sense for your goals.
Why Refinance?
The three main reasons homeowners replace their existing mortgage.
Rate & Term
The classic refinance. Swap your high interest rate for a lower one to reduce your monthly payment, or switch from a 30-year to a 15-year term to pay off the house faster.
Cash-Out
Tap into your home's equity. Take out a new loan larger than your current balance and receive the difference in cash for renovations, debt consolidation, or investments.
Drop PMI
If your home has appreciated significantly since you bought it, you may now have 20% equity. A refinance can remove your mortgage insurance, dropping your payment without a rate change.
The Break-Even Point
Refinancing isn't free. You have to pay closing costs (title work, appraisal, origination) to get the new loan. The most important metric is the "break-even point"—how many months it takes for your monthly savings to cover the closing costs.
Example: If closing costs are $3,000 and you save $100/month on your payment, your break-even point is 30 months. If you plan to move before 30 months, refinancing is a bad idea.
Streamline Refinancing
If you already have an FHA or VA loan, you have access to "Streamline" options that make refinancing incredibly fast and cheap.