Refinance Reset the terms.
Mortgage refinancing may lower your monthly payments, shorten your term, or free up cash.
Replace your current mortgage with one on better terms.
Refinancing means closing a new mortgage that pays off your existing one, ideally at a lower rate, shorter term, or different structure than what you have today. It's the same paperwork as a purchase loan minus the home shopping — appraisal, income docs, underwriting, closing.
The right time to refinance depends on rate spread, how long you plan to stay, and what closing costs look like for your scenario. Worth modeling, not assuming.
Common reasons to refinance
- Lower your rate. If market rates have dropped since you closed, refinancing to today's rate may meaningfully reduce your monthly payment and lifetime interest.
- Shorten the term. Refinancing from a 30-year to a 15-year (often at a lower rate) lets you pay the loan off faster and save substantial interest, with a manageable monthly payment increase.
- Switch from ARM to fixed. If you have an adjustable-rate mortgage approaching its first reset, refinancing to a fixed rate locks in predictability.
- Drop mortgage insurance. If you've reached 20% equity, refinancing to a conventional loan can remove FHA MIP (which doesn't fall off automatically on most FHA loans).
- Cash out. Take a portion of your equity in cash to consolidate debt, fund renovations, or invest. See our cash-out refinance page.
When to consider refinancing
The classic rule of thumb — refinance when rates drop 1% — is too rigid. The real question is your break-even point: how many months will it take for the monthly savings to recoup the closing costs? If you'll stay in the home longer than that, the refinance pencils.
We'll model break-even with your actual numbers. Sometimes a refinance saves you significant money. Sometimes it doesn't. We'll tell you straight either way.
How it works
- New appraisal on the home (in most cases).
- Income, assets, and credit re-verified.
- Closing costs typically 2–5% of the loan amount.
- 30 to 45 days from application to closing.
- No prepayment penalties on the new loan.
Reach out for a free refinance analysis — we'll run your scenario and tell you whether the math works.
Get started today!
Tell us a little about your situation and we'll send personalized loan options within one business day.
Refinance FAQs
When does it make sense to refinance?
Generally when the new rate is at least 0.5–0.75% below your current rate, when you can shorten the term without raising the payment uncomfortably, or when you want to drop mortgage insurance. We run break-even math on every scenario.
How long does a refinance take?
Most refinances close in 21–35 days. A streamline refinance (FHA streamline, VA IRRRL) can be faster.
Are there closing costs on a refinance?
Yes. Costs typically run 2–5% of the loan amount and can sometimes be rolled into the new loan. We always show the break-even point so you know how long until the savings offset the costs.