Best forBorrowers with a clear rate, payment, term or equity objective
Property useDepends on program and occupancy
Key featureNew mortgage replaces the current loan
Who this option may be for
- Homeowners evaluating a lower rate or different loan term.
- Borrowers seeking to change a rate structure or remove certain mortgage costs.
- Homeowners considering cash-out while understanding the effect on balance and equity.
Qualification basics
- Identify the goal before comparing offers: payment, total interest, term, stability or equity access.
- Review the Loan Estimate, points, lender credits, third-party fees and prepaid items.
- Calculate the break-even period for upfront costs and compare total cost over the expected holding period.
- Confirm appraisal, title, income and asset documentation requirements.
Potential benefits
- Can change payment, term or rate structure.
- May consolidate certain debts or access equity when appropriate.
- Offers a chance to compare current loan structure with new alternatives.
Important considerations
- Closing costs can reduce or delay savings.
- Restarting or extending a term may increase total interest even if the payment falls.
- Cash-out increases the amount secured by the home and reduces equity.
Documents to prepare
- Current mortgage statement
- Homeowners insurance and tax information
- Income and employment records
- Asset and debt statements
- Property and occupancy details
Frequently asked questions
How do I know whether refinancing saves money?
Compare upfront costs with monthly and long-term savings, then consider how long you expect to keep the new loan.
Does a lower monthly payment always mean a better refinance?
No. A lower payment may come from extending the term, which can increase total interest. Compare both monthly and lifetime cost.
What is a cash-out refinance?
It is a refinance where the new loan is larger than the amount needed to pay off the existing mortgage and eligible costs, with the difference provided as cash, subject to program rules.
Talk through the details
Have questions about mortgage refinance?
Greg can help you compare programme details, documentation, costs and timing for your specific scenario.
Authoritative education sources
Programme rules, limits and lender overlays can change. This page is educational and is not a commitment to lend or a substitute for reviewing official disclosures.