Refinance Options
Refinance Your Conventional Mortgage to Lower Your Payment
Refinancing replaces your existing mortgage with a new loan, typically to reduce your rate, change your loan term, access home equity, or consolidate debt. Conventional refinances work well for borrowers with good credit and sufficient equity in their home. By refinancing at a lower rate, you can reduce your monthly payment or pay off your loan faster. A rate and term refinance focuses purely on rate savings, while a cash-out refinance lets you borrow against your equity for other needs. We'll help you evaluate whether refinancing makes financial sense for your situation.
Calculate Your Potential Monthly Savings
Enter your current loan details and new rate estimate to see how much you could save each month through refinancing. This calculation helps you understand the financial impact before you commit to an application.
Calculator results are estimates provided for illustrative purposes only and may not reflect actual loan terms. This is not a commitment to lend, a preapproval, or an offer of credit. Actual rates, payments, and costs depend on credit approval, satisfactory appraisal, and underwriting guidelines. Consult a licensed loan officer for details.
Types of Conventional Refinances
Lower Your Rate or Adjust Your Loan Term
A rate and term refinance replaces your current mortgage with a new conventional loan at a different rate or term. You might refinance to a shorter 15-year term to build equity faster, or extend to a 30-year term to lower your payment. The new loan pays off the old one completely. No cash changes hands except for closing costs, which the lender may allow you to roll into the loan. This is the most straightforward refinance option and works well when your primary goal is rate savings or term adjustment.
Access Your Home Equity for Cash
A cash-out refinance lets you borrow more than you owe and receive the difference in cash. For example, if your home is worth 300000 and you owe 200000, you might refinance for 240000 and receive 40000 at closing. The new loan amount is higher, but you get cash to use for home improvements, debt consolidation, or other needs. Since you're borrowing more against your home, lenders typically require stronger credit and equity position. Your payment will increase along with the loan balance.
Refinance Without Out-of-Pocket Closing Costs
A no-cost refinance eliminates upfront closing costs by rolling them into your loan or accepting a slightly higher rate in exchange for the lender covering costs. This works well if you don't have cash available for closing or want to minimize out-of-pocket expense. The tradeoff is a modestly higher interest rate compared to a standard refinance. Over time, the rate difference is offset by avoiding closing costs. This option makes sense if you plan to stay in your home long term and want to simplify the refinance process.
Frequently asked questions
How much can I borrow?
That depends on your income, credit profile, existing debts, and the size of your down payment. A quick pre-qualification gives you a realistic range before you start shopping.
How long does the process take?
Most purchase loans close in 30 to 45 days once your application is complete. Refinances are often faster because there is no seller or move to coordinate.