Compare the cost of a new loan against the value it can create over time.
Mortgage Refinancing
Refinancing replaces your existing mortgage with a new one, ideally on better terms. Whether your goal is a lower rate, a shorter payoff timeline, or accessing your home's equity, a well-timed refinance can save you tens of thousands of dollars over the life of your loan.
The right refinance strategy depends on your current loan, your goals, how long you plan to stay in the home, and where rates are today. Jake will do the analysis upfront so you make a decision based on real numbers, not guesswork.
Types of Refinances
Rate & Term Refinance
Lower your interest rate, shorten your loan term, or both, without taking cash out. The most common refinance goal is reducing the monthly payment or paying off the home faster.
Cash-Out Refinance
Replace your existing mortgage with a larger loan and pocket the difference in cash. Use it for home improvements, debt consolidation, education, or any major expense.
VA IRRRL (Streamline Refinance)
Exclusively for existing VA borrowers. Reduces your rate and payment with minimal paperwork, no income verification, and typically no appraisal required.
FHA Streamline Refinance
For existing FHA borrowers looking to lower their rate. Reduced documentation and a simplified process, with no new appraisal required in most cases.
ARM to Fixed Conversion
Lock in a fixed rate and eliminate payment uncertainty by converting your adjustable-rate mortgage to a stable 15 or 30-year fixed loan.
Key Considerations Before Refinancing
Break-Even Analysis
Refinancing has closing costs (typically 2–5% of the loan). Calculate how many months it takes for your monthly savings to offset those costs. That's your break-even point.
Time Remaining in Home
If you plan to sell within 2–3 years, refinancing may not make financial sense unless your rate reduction is dramatic.
Loan Term Reset
Refinancing into a new 30-year loan restarts your amortization clock. Even at a lower rate, you may pay more total interest if you're 10+ years into your current mortgage.
Credit & Equity
Your current credit score and LTV will determine the rate you qualify for. Generally, 720+ credit and 20%+ equity unlock the best refinance terms.
Current Rate vs. Market Rate
The 1% rule of thumb (refinance if you can drop your rate by 1%) is a starting point, but the real math is more nuanced. Jake will run the numbers for your specific scenario.
Common Questions
How do I know if refinancing will save me money?
The key calculation is your break-even point: take the closing costs and divide by your monthly savings. If you plan to stay in the home longer than that number of months, refinancing typically makes sense. Jake will run this math for you before you commit to anything.
Can I refinance if I have less than 20% equity?
Yes. With conventional loans, you can refinance with as little as 3–5% equity, though you'll pay PMI. FHA Streamlines and VA IRRRLs require only that you're current on your existing loan. Cash-out refinances typically require at least 20% remaining equity after the cash-out.
How long does a refinance take?
Typically 21–45 days from application to close. Streamline refinances (FHA and VA) are often faster, sometimes completing in as little as 10–15 business days. Jake keeps you informed throughout and works to hit your target closing date.
Will refinancing hurt my credit score?
A refinance triggers a hard inquiry, which may temporarily lower your score by a few points. However, multiple mortgage inquiries within a 14–45 day window are typically treated as a single inquiry by credit scoring models, so rate shopping won't compound the impact.
When Does Refinancing Make Sense?
Refinancing is worth exploring if:
- Current rates are meaningfully lower than your existing rate (even 0.5–0.75% can matter)
- Your credit score has improved since you originally financed
- You need access to your home's equity for a major expense
- You want to convert an ARM to a fixed rate for payment stability
- You're carrying FHA mortgage insurance and can qualify for a conventional refinance
- You want to shorten your loan term and build equity faster
Find out if refinancing makes sense for you.
Jake will run your break-even analysis, compare your current loan against today's rates, and give you an honest recommendation, even if the answer is not right now.