- Cash out
- None
- Common goals
- Lower rate, shorter term, drop PMI
- Costs
- Closing costs apply
- Key number
- Your break-even month
What it is
A rate and term refinance replaces your mortgage with a new one without taking cash out. The goal is a lower rate, a lower payment, a faster payoff or a more stable loan.
How it works with a broker
A refinance only makes sense if you keep the loan long enough for the savings to outrun the costs. I calculate that break-even month before anything else.
If the math does not work yet, I will tell you, and I will let you know when it does.
Common questions
How much does the rate need to drop?
There is no fixed rule. It depends on your loan size, closing costs and how long you will stay. The break-even calculator on the Tools page gives you a quick read.
Will I start over at 30 years?
Only if you choose to. You can refinance into a 25, 20 or 15 year term to keep your payoff date on track.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.