Refinance strategy, priced honestly
Payment relief, a shorter term, cash for a project, or dropping FHA mortgage insurance — every refinance is a strategy question. We price your actual scenario and tell you honestly whether the move is worth making.
Who it fits
Homeowners chasing a lower rate
If market rates have dropped since you closed, a rate-and-term refinance can lower your payment.
Homeowners with a project to fund
A cash-out refinance turns home equity into cash for renovations, debt consolidation, or other goals.
FHA borrowers ready to drop MI
Refinancing into a conventional loan is the common path off permanent FHA mortgage insurance.
Is refinancing worth it? The break-even math
An illustrative refinance from 7.25% to 6.375% on a $350,000 balance.
| Item | Current loan | New loan | Difference |
|---|---|---|---|
| Rate | 7.25% | 6.375% | -0.875 pts |
| Monthly payment | $2,388 | $2,184 | -$204/mo |
| Closing costs | — | $5,800 | Break-even ≈ 28 months |
Illustration only. Actual rates, costs, and break-even timelines depend on your loan balance, credit profile, and current market conditions.
Where refinancing helps
- Can lower your rate and monthly payment
- Cash-out option turns equity into usable funds
- FHA/VA streamline options skip appraisal in many cases
- A path off permanent FHA mortgage insurance
What to weigh
- Closing costs reset your break-even clock
- Cash-out refinancing reduces your home equity
- Extending your term can increase total interest paid
- Not always worth it if you're moving soon
Common questions
When does refinancing make sense?
Generally when the monthly savings outweigh the closing costs within a timeframe you're comfortable with — we calculate your specific break-even point before you decide.
What's a break-even period?
The number of months it takes for your monthly savings to cover the closing costs of the refinance. After that point, you're saving money.
How much cash can I take out?
Typically up to 80% of your home's value on a conventional cash-out refinance, though limits vary by loan type and property.
Can I refinance out of FHA mortgage insurance?
Yes — refinancing into a conventional loan once you have enough equity is the most common way to eliminate permanent FHA MI.
See if refinancing makes sense for you
No cost, no obligation — we'll run your break-even numbers honestly, even if the answer is 'not yet.'