Refinance advisor
Refinancing only makes sense if it makes you money.
I'll run your actual numbers and tell you honestly whether a refinance is worth it — including when the answer is no. If it does make sense, we move fast.
Four good reasons
Why homeowners refinance
Most people think of refinancing as chasing a lower rate. It's often about something else entirely.
Lower your rate
The classic reason. If rates have dropped meaningfully since you closed — or your credit has improved — a lower rate can cut hundreds off your payment and tens of thousands off the life of the loan.
Take cash out
Turn built-up equity into cash for a renovation, tuition, or consolidating high-interest debt. Usually a far cheaper way to borrow than a credit card or personal loan.
Drop mortgage insurance
If you started with an FHA loan and now have 20% equity, refinancing to a conventional loan can eliminate mortgage insurance entirely. That's pure monthly savings.
Change your loan term
Move from a 30-year to a 15-year to own your home sooner and pay far less interest, or stretch back out to a 30 to free up monthly cash flow.
The honest math
Know your break-even before you sign anything
A refinance has closing costs. The only question that matters is how long it takes your monthly savings to pay those costs back. That's your break-even point.
I'll give you this number in writing before you commit to anything. If the math doesn't work for your situation, I'll tell you so — I'd rather keep you as a client for the next ten years than push a loan that doesn't serve you.
- Written estimate of total closing costs
- Your exact monthly savings
- Your break-even month
- Total interest saved or added over the loan
Types of refinance
Which one fits your situation
| Type | Best for | What to know |
|---|---|---|
| Rate & term | Lowering your rate or changing your loan length | The most common refinance. No cash comes back to you at closing beyond minor adjustments. |
| Cash-out | Accessing equity for renovations, debt, or investment | Usually requires you to keep at least 20% equity. Rates run slightly higher than rate & term. |
| FHA Streamline | Existing FHA borrowers lowering their rate | Reduced documentation and often no new appraisal. You must already have an FHA loan. |
| VA IRRRL | Veterans with an existing VA loan | The VA's streamline option. Minimal paperwork and no appraisal in most cases. |
| FHA to conventional | Homeowners who've reached 20% equity | The main way to permanently remove FHA mortgage insurance from your payment. |
Refinance questions
What homeowners ask
How much does my rate need to drop to be worth it?
The old rule of thumb was one full percentage point, but that's too crude. What matters is your break-even point and how long you plan to stay. On a large balance, even a half-point can pay for itself in under two years.
Will refinancing restart my 30-year clock?
It does by default, and that's worth thinking about. If you're eight years into a 30-year loan, refinancing into a fresh 30 lowers your payment but stretches your payoff. Refinancing into a 20 or 15-year term avoids that — and often carries a better rate too.
How much equity do I need?
For a standard rate-and-term refinance, often as little as 5%. For cash-out, most programs want you to retain 20% equity after the new loan. Streamline options for existing FHA and VA borrowers can require far less.
Can I skip a mortgage payment when I refinance?
It can look that way because of how interest is paid in arrears, but you aren't getting a free month — that interest is accounted for in the payoff. I'll show you exactly where it lands so it isn't a surprise.
How long does a refinance take?
Typically two to four weeks, and faster on streamline programs. The pace depends mostly on how quickly documents come back and whether an appraisal is required.
Free analysis · No obligation
Should you refinance? Let's find out.
Send me your current loan details and I'll come back with your real savings, your closing costs, and your break-even month.