Refinance.
Replacing your current mortgage with a new one — usually to lower your rate, reduce your payment, change the term, or pull cash from your home equity. A refi gets the same effort here as a purchase — no separate desk, no different treatment.
When do you break even?
Closing costs divided by your monthly savings is the month you start coming out ahead. Stay past it and the refi pays off — I run that math before you commit to anything.
How it's built
- Rate-and-term
- Lower the rate or shorten/lengthen the term without taking cash out. The simplest and cheapest refinance type. You can still walk away with up to $2,500 (or 2% of the loan, whichever is less) without it counting as cash-out.
- Cash-out refi
- Borrow against accumulated equity. Up to 80% LTV typical for primary residence; 75% for investment property.
- Streamline refi
- For existing FHA or VA loans — minimal documentation, no appraisal in many cases, faster close. Big savings on closing costs.
- Loan types
- All the same options as a purchase loan. Fixed terms (10–30 yr), ARMs, FHA, VA, USDA, Conventional, Jumbo.
- Closing costs
- 2–5% of loan amount typical. Can be rolled into the loan or paid out of pocket. Sometimes the rate-vs-cost trade matters more than the headline rate.
- Closing timeline
- 21–35 days typical. Streamline refis can close in 14–21.
Qualifying
- Credit score
- Same minimums as a purchase — 620+ Conventional, 580+ FHA, etc. A drop from your purchase credit can affect pricing.
- Debt-to-income
- Same ceilings as purchase loans for the loan type you choose.
- Equity
- At least 3–5% for rate-and-term. 20% minimum for cash-out (80% max LTV). Cash-out with a debt-to-income above 45% also needs six months of payments in reserve.
- Income docs
- Same documentation as a purchase. If your income has changed since you got your current loan, plan to re-document.
- Appraisal
- Required for most refis. FHA Streamline and VA IRRRL often waive it.
- Seasoning
- Conventional cash-out: the loan you're paying off must be at least 12 months old, and you must have been on title six months (inheritance, divorce awards, and delayed financing are the exceptions). VA IRRRL: 210 days. And if the home was listed for sale, it has to be off the market before closing.
Not for you if you can't drop the rate enough to clear closing costs before you'd sell or move — the break-even has to land in your favor first.
When a loan I offer isn't right for you, I'll say so — and point you to the one that is.
FAQ
When does refinancing actually make sense?
What's the break-even point?
Cash-out refi or HELOC — which is better?
Can I refinance with no closing costs?
Will refinancing reset my loan term?
How fast can a refinance close?
Ask me directly.
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