Refinance
Review your options before you refinance.
Refinancing changes your loan terms — and possibly your total cost of borrowing. I'll walk through the tradeoffs so you can make an informed decision.
Common reasons people refinance.
Change your rate or payment
A different interest rate or term can change your monthly payment and long-term interest costs.
Shorten or extend your loan
Move from a longer to a shorter term (or vice-versa) based on your goals and budget.
Change loan type
Some borrowers move between fixed-rate and adjustable-rate loans, or into or out of government programs.
Access home equity
Cash-out refinancing may allow qualified borrowers to convert a portion of home equity into cash.
Debt consolidation
Combining higher-interest debts into your mortgage may lower your overall monthly payment and simplify what you owe.
Your home
Refinancing should make the home you already love work better for you.
Refinance calculator
Refinance comparison
Compare an existing loan payment with a new loan payment.
Monthly change
-$255
Current: $2,139/mo
New: $1,884/mo
Estimated APR on the new loan
6.290% Estimated APR
Estimated APR is provided for informational purposes only. Actual APR may vary based on lender terms, fees, credit profile, and other factors.
Total payments on the new loan: $678,274
Amount financed: $304,705 · New loan term: 30 years
Break-even: 24 months
Estimated APR on the new loan
6.290%
Interest rate: 6.250%
Prepaid finance charges: $1,295.00
Amount financed: $304,705.00
The Annual Percentage Rate (APR) shown is an illustrative estimate for educational purposes only. It is calculated from the figures you enter and assumes the loan is held to full term with no changes. It is not a quote, offer, commitment to lend, or an advertisement of specific credit terms. Actual APR depends on the final loan amount, interest rate, term, and the finance charges that apply to your transaction, and will be disclosed on your Loan Estimate and Closing Disclosure. Third-party costs that are not finance charges (such as appraisal, title services you shop for, recording fees, taxes, and homeowners insurance) are excluded from APR. Rates, fees, and terms are subject to change and to credit approval; not all applicants will qualify.
Common Questions
Questions to Answer Before You Refinance
When might refinancing make sense?
Refinancing may be worth reviewing when it helps you reach a specific goal: a different payment, a shorter or longer term, a change from an adjustable to a fixed rate, removing mortgage insurance, or accessing equity. A lower rate alone does not always mean a refinance is the right move once closing costs are counted.
What is the break-even point?
The break-even point is roughly how many months of monthly savings it takes to recover the cost of refinancing. If you expect to keep the loan well past that point, the refinance may pay for itself; if you might sell or refinance again sooner, it may not.
Rate-and-term or cash-out?
A rate-and-term refinance changes the rate, term, or loan type without taking cash out. A cash-out refinance replaces your loan with a larger one and pays you the difference from your equity. Cash-out typically has different pricing and equity requirements, and it increases the amount you owe.
What does refinancing cost?
Refinances usually involve lender fees, title and appraisal costs, and prepaid items such as escrow deposits. Some costs can be paid upfront and some may be financed into the new loan, which affects your balance and total interest.