Refinancing replaces an existing mortgage with a new one. Whether it makes sense depends on the new terms, costs, your current loan, and how long you expect to keep the financing.
Choose the outcome you want
A different payment, loan term, rate structure, removal of an eligible mortgage insurance obligation, or access to equity can lead to different refinance conversations. Be clear about the goal before comparing offers.
Compare the total cost and the timeline
Look at closing costs, points, any amount added to the balance, the new repayment term, and the expected time you will keep the loan. A lower payment does not always mean a lower total cost. Resetting the term may extend the time you pay interest.
Evaluate a cash out refinance separately
Accessing equity increases or changes debt secured by your home. Consider the intended use of the funds, repayment capacity, and alternatives such as a home equity product when available. Do not treat projected appreciation or future refinancing as certain.
Bring your current loan details
- Recent mortgage statement and current loan terms
- Current payment, including escrow and mortgage insurance
- Estimated property value and other liens
- Your goal, expected ownership timeline, and cash needs
By refinancing your existing loan, your total finance charges may be higher over the life of the loan.