A refinance replaces your current mortgage with a new one. People do it to change their payment, shorten their term, move from an adjustable rate to a fixed rate, or remove mortgage insurance. Whether it makes sense comes down to math and how long you plan to stay, and we will show you both.
Who it fits
A rate above today's market
Homeowners whose current rate is above what they may qualify for today
Break even toolLeaving an ARM
Owners who want to move from an ARM to a fixed rate
How ARMs workDropping FHA mortgage insurance
FHA borrowers with enough equity to drop mortgage insurance
FHA loansPaying it off sooner
Anyone who wants to pay the home off sooner with a shorter term
15 year fixedHow it works
We compare your current loan with your refinance options and calculate the break even point, meaning the month when what you have saved passes what the refinance cost. If you expect to move before that month, we will tell you to wait.
The process looks like a purchase without the house hunting: application, documents, appraisal when required, and a closing that can often happen at your kitchen table.
Key facts
- Common goals
- Change the payment, shorten the term, drop mortgage insurance, switch to a fixed rate
- Typical timeline
- Often 30 days or less
- Try it yourself
- Use the break even tool on our calculator page
- Appraisal
- Sometimes waived, depending on the loan and the lender
Common questions
When does refinancing make sense?
When the savings pass the costs before you expect to sell or refinance again. Our break even tool gives you a fast estimate and a loan officer can confirm the real numbers.
Does refinancing restart my loan?
It starts a new loan, but you choose the term. Many owners refinance into a 20 or 15 year loan so they do not add years.
Can I refinance an FHA loan?
Yes. FHA streamline refinances need less paperwork, and with enough equity you may be able to move to a conventional loan without mortgage insurance.
