Home Loans
Refinance
Refinancing replaces your current mortgage with a new one. Here is when it may help and what to weigh.
Common reasons to refinance
- Lower your interest rate or monthly payment
- Shorten the term to pay off faster
- Switch from an adjustable-rate to a fixed-rate loan
- Remove mortgage insurance once you have enough equity
- Tap equity with a cash-out refinance
Common refi types
- Rate-and-term refinance
- Cash-out refinance
- Streamline refinance for FHA or VA loans
Think about break-even
Refinancing has costs: appraisal, title, lender fees, and sometimes points. Divide total closing costs by your monthly savings to estimate the months it takes to break even. If you plan to move before that point, the refi may not pay off.
What lenders typically review
- Credit score and recent credit history
- Loan-to-value ratio based on a new appraisal
- Income, employment, and DTI
- Property type and occupancy
Explore home loan options tailored to your criteria
Based on your home price, location, income, credit range, down payment, and goals, Finance Choices can help you compare mortgage, refinance, home equity, FHA, VA, and other home loan options from relevant partners.
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