REFINANCE YOUR MORTGAGE
A mortgage refinance replaces your current home loan with a new one. Depending on your goals, refinancing may help you lower your monthly payment, change your loan term, switch from an adjustable to a fixed rate or tap your home equity with a cash-out refinance.
- Rate-and-term
- Cash-out
- FHA Streamline and VA IRRRL
The basics
What is refinancing?
To refinance a mortgage means to replace your existing loan with a new one. At closing, the new loan pays off the principal balance of the old loan in full. A rate-and-term refinance changes your interest rate or loan term, while a cash-out refinance lets you borrow against your home equity. Comparing closing costs to your monthly savings helps you find your break-even point.
- Rate-and-term
- New rate or term
- Cash-out
- Tap home equity
- Streamline
- FHA & VA options
How it works
Refinancing in four steps
One licensed loan officer helps you decide whether refinancing makes sense and guides you through to closing.
- 01
Define your goal
Lower payment, shorter term, a fixed rate or cash out? Your loan officer reviews your current loan, equity and credit.
- 02
Compare your options
Review loan estimates side by side and weigh closing costs against your savings to find your break-even point.
- 03
Appraisal and underwriting
An appraisal may be required to confirm your home's value while your application is reviewed. We keep you updated throughout.
- 04
Close on your new loan
Review your Closing Disclosure and sign. Your new loan pays off the old one in full.
Refinance programs
Mortgage Refinance Made Simple
Find the right refinance program for your financial goals, whether that's a lower monthly payment, a shorter loan term or cash out of your home equity. We keep the process transparent and efficient.
FHA Loans
An FHA streamline refinance may lower your rate with less paperwork.
Explore FHA LoansUSDA Loans
Refinance an existing USDA loan to a potentially lower rate or payment.
Explore USDA LoansDPA Loans
Down payment assistance programs may help cover upfront costs.
Explore DPA LoansVA Loans
VA IRRRL and cash-out refinance options for eligible veterans.
Explore VA LoansConventional Loans
Rate-and-term or cash-out refinance with a conventional loan.
Explore Conventional Loans- Learn more
Compare refinance programs
See how rate-and-term, cash-out and streamline options compare before you talk to a loan officer.
Why refinance
Reasons to Refinance
Homeowners choose a mortgage refinance for many reasons. We help you define your goal and choose the right option, which often means:
- Securing a lower rate to reduce your monthly payment
- Choosing a shorter loan term to pay off your loan sooner and save on total interest
- Switching from an ARM to a fixed rate for predictable payments
- Using a cash-out refinance to turn home equity into cash for major expenses or debt payoff
Know your break-even point
Compare closing costs to your monthly savings
Timing
When is the right time to refinance?
A mortgage refinance replaces your current loan with a new one. Whether it makes sense depends on your home equity, today's refinance rates, your loan term and how long you plan to stay in your home.
There are several signs it may be the right time to refinance. If rising home values in your area have increased your home equity, you may qualify for better terms or a cash-out refinance. If current refinance rates are meaningfully lower than your rate, a rate-and-term refinance could lower your monthly payment; compare the closing costs to your savings to find your break-even point. And if you can afford a higher payment, refinancing to a shorter loan term means more of each payment goes toward principal, helping you build equity faster. Eligible FHA and VA borrowers may also consider an FHA Streamline or VA IRRRL.
Get a QuoteRefinance FAQs
Refinancing usually makes sense when your savings cover the closing costs before you plan to sell or refinance again. To find your break-even point, divide the total closing costs by your monthly savings.
Refinancing has closing costs similar to a purchase, such as lender fees, an appraisal and title charges. Your Loan Estimate lists them so you can compare offers side by side.
A cash-out refinance on a Texas homestead is a Section 50(a)(6) home equity loan. It is limited to 80% combined loan-to-value, requires a 12-day notice before closing and is limited to one Texas home equity loan every 12 months.
Yes. Eligible borrowers may use an FHA streamline refinance or a VA Interest Rate Reduction Refinance Loan (IRRRL), which can require less paperwork, or refinance into a conventional loan.
It may. If your home's value has grown and you now have at least 20% equity, refinancing into a conventional loan may let you drop PMI or FHA mortgage insurance.
Often, yes. An appraisal confirms your home's value, though some programs may waive it for eligible borrowers.
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