Refinance Loans

Refinancing pays off your current mortgage with a new one. It can make sense to lower the rate, shorten the term, move off an adjustable structure, remove mortgage insurance or access equity — but only when the math clears the cost of doing it. We run the break-even before recommending anything.

• Homeowners whose rate or loan structure no longer fits
• Owners with enough equity to drop mortgage insurance
• Owners considering consolidating higher-cost debt against home equity

• May reduce the monthly payment or the total interest paid, depending on the terms chosen
• Can shorten the remaining term or move from adjustable to fixed
• Cash-out options can convert equity into usable funds

• Closing costs apply and have to be recovered before the change pays for itself
• Extending the term can increase total finance charges even when the monthly payment falls
• Cash-out reduces your equity and typically prices higher than a rate-and-term refinance
• Refinancing restarts the amortization schedule unless the term is deliberately shortened

These are the factors an underwriter typically reviews. They are not a checklist of requirements, and meeting them does not guarantee eligibility or approval.

• Sufficient equity for the program being considered
• Credit, income and asset review
• Debt-to-income within program limits
• An acceptable property and appraisal, where one is required

• Refinance break-even
• Monthly payment estimator
• Side-by-side loan comparison