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Refinance
A refinance should solve something.
Lower your rate. Shorten your term. Pull cash out for a remodel, tuition, or to wipe out high-interest debt. The right refinance is a tool, not a sales pitch, and we'll run the numbers honestly before you commit to anything.
Corie Adams · Producing Branch Manager · NMLS #1875205
Who this is for
Whether this fits the plan you have.
There is no universal best refinance. The right one depends on your rate, your equity, your remaining term, and what you're actually trying to accomplish.
Rate and term homeowners
You want a lower monthly payment, a shorter payoff, or to move from an adjustable rate into a fixed one before it adjusts. No cash out, just a stronger loan structure.
Cash-out borrowers
You've built equity and want to convert part of it into cash for renovations, tuition, investing, or a major expense, while keeping at least 20 percent equity in the home. If the cash is really a down payment on the next house, short-term financing that lets you buy before this one sells is usually the better tool.
Homeowners paying PMI or MIP
Your home has appreciated or you've paid the balance down, and you may be paying for mortgage insurance you no longer need.
Households consolidating debt
You want to roll high-interest credit cards, personal loans, or car loans into your mortgage at a lower rate, paired with a plan to stay out of new debt.
Homeowners funding a renovation
You're planning a kitchen, an addition, or a larger project and want to compare a cash-out refinance to renovation-specific loans.
Anyone unsure if it's worth it
You've heard refinancing might help but aren't sure the math works. We'll run it honestly and tell you when to wait.
How it works
The path, step by step.
Most refinances close in 30 to 45 days. You'll always know what just happened, what's coming next, and what we need from you to keep things moving.
Quick conversation
A 20-minute call. What are you trying to accomplish? Lower payment, cash out, shorter term, dropping PMI? We'll know within minutes whether a refinance is the right tool.
Run the numbers
We pull current rates, estimate closing costs, and show you a side by side of today's loan versus the refinance, including your break-even month.
Application and documents
If the numbers work, you complete a short application and send recent income, asset, and mortgage statements. Most clients spend under an hour on this step.
Appraisal and underwriting
We order the appraisal, or waive it when eligible, and move the file through underwriting, handling the lender back and forth for you.
Closing
Sign at your kitchen table, our office, or remotely. After a short federal rescission period, the new loan funds and pays off the old one.
Start with a real number, not an estimate.
A pre-approval reviews your income, assets, and credit so you know the price range you can actually work with before you tour a home or sign a builder contract.
Requirements at a glance
What underwriting looks at.
These are typical expectations. Specific numbers depend on the program, whether it's rate and term, cash-out, or a government-backed streamline.
- Credit score
- Varies by program; conventional refinances typically look for 620 and above
- Equity
- Cash-out refinances generally require keeping at least 20 percent equity after closing
- Debt to income
- Generally up to about 43 to 50 percent depending on the program
- Appraisal
- Often required, though some streamline programs allow a waiver
- Income documentation
- Recent pay stubs and tax returns, or bank statements for self-employed borrowers
- Occupancy
- Primary residence, second home, and investment property refinances are all available with different guidelines
- Break-even window
- Most refinances make sense when you'll own the home past the point savings cover closing costs
Guidelines vary by investor and change over time. Nothing here is a commitment to lend or an approval of credit.
Costs and assumptions
What it costs, and what we assumed.
A refinance is a transaction with real costs. We disclose every dollar up front so you can weigh it against the benefit.
Closing costs
Typically 2 to 4 percent of the loan amount, covering title, appraisal, and lender fees. Lender credit options can reduce or eliminate out of pocket costs.
Prepaid escrows
Property taxes and homeowners insurance collected at closing so the new escrow account starts funded.
Skipped payment adjustment
Most borrowers skip a mortgage payment after closing. It is not free money; the interest is built into the new loan balance.
Common misconceptions
What people get told, and what is actually true.
Often heard
Refinancing always saves you money.
In practice
It only saves money if the monthly savings outpace the closing costs within a reasonable window. We calculate your break-even month before you decide.
Often heard
You always restart your 30-year clock.
In practice
Only if you choose a new 30-year term. You can refinance into a 25, 20, 15, or 10 year term instead.
Often heard
You need a new appraisal every time.
In practice
Many programs allow appraisal waivers when the loan to value and credit profile support it, and some streamline refinances skip it entirely.
Often heard
Refinancing will hurt your credit significantly.
In practice
A hard credit pull causes a small, temporary dip. Multiple mortgage inquiries within a 45-day window count as one.
Use your equity
Your home has built equity. What can you do with it?
Whether you are renovating, consolidating higher-interest debt, paying for a major expense, or simply want access to available funds, there are several ways to tap into your home's equity. The right option depends on how much you need, how you plan to use the money, and whether it makes sense to leave your current first mortgage untouched.
HELOC
Home Equity Line of Credit
A HELOC is a revolving line of credit secured by your home. Rather than receiving one lump sum, you may draw funds as you need them, subject to the terms of the line.
- Access funds as needed, subject to the terms of the line
- May be useful when expenses occur over time, such as a staged renovation
- Your existing first mortgage generally remains in place
- HELOC structures, draw periods, and rates can vary by program
HELOAN
Home Equity Loan
A home equity loan, sometimes called a HELOAN, generally provides funds as a lump sum with a payment that is separate from your existing first mortgage.
- May be useful when you know approximately how much you need
- Your existing first mortgage generally remains in place
- Can provide a more predictable repayment structure, depending on the loan terms
- Terms and availability depend on your situation and qualification
Cash-Out Refinance
Cash-Out Refinance
A cash-out refinance replaces your existing first mortgage with a new mortgage and allows qualified homeowners to access a portion of their equity as cash at closing.
- Replaces your current first mortgage entirely
- Creates an entirely new mortgage rate and new loan terms
- May make sense in certain situations, though it is not automatically better than keeping your current mortgage
- Worth weighing carefully when your existing rate is well below today's market
Side by side
Which home equity option may fit your goals?
A plain-language comparison to help you think it through. Availability and terms depend on your individual situation and qualification.
HELOC
- Lump sum or as needed?
- Draw funds as you need them, subject to the terms of the line
- Does my first mortgage stay?
- Generally yes, your existing first mortgage remains in place
- Separate monthly payment?
- Yes, a payment on the line in addition to your mortgage
- Goals it may support
- Staged renovations, ongoing expenses, standby access to funds
- What to consider
- Structures and rates vary, and payments may change over time
Home Equity Loan (HELOAN)
- Lump sum or as needed?
- Generally a single lump sum at closing
- Does my first mortgage stay?
- Generally yes, your existing first mortgage remains in place
- Separate monthly payment?
- Yes, a second payment alongside your mortgage
- Goals it may support
- A known one-time expense such as a defined project or consolidation
- What to consider
- Terms vary, so review the repayment structure before deciding
Cash-Out Refinance
- Lump sum or as needed?
- A portion of equity as cash at closing, for qualified homeowners
- Does my first mortgage stay?
- No, it is replaced by a new first mortgage
- Separate monthly payment?
- No, one mortgage payment on the new loan
- Goals it may support
- Larger needs, or restructuring the mortgage and accessing equity together
- What to consider
- New rate and new terms apply to the full balance, not only the cash taken
Questions
Asked at the kitchen table.
From the Learning Center
Related guides.
Short guides that clarify the numbers behind a refinance decision.
Client Stories