Refinancing Guide
Refinancing your mortgage can lower your monthly payment, shorten your loan term, or give you access to cash. Learn how to do it right.
What Does Refinancing Mean?
Refinancing means replacing your existing mortgage with a new one — typically to get a lower interest rate, change your loan term, or switch from an adjustable to a fixed rate. You essentially pay off your old loan and start a new one with new terms.
The most common reason homeowners refinance is to lower their monthly payment. Even a 0.5% rate reduction on a $400,000 loan saves about $115/month, or $41,000 over 30 years.
Types of Refinancing
Rate-and-Term Refinance
Change your interest rate, loan term, or both. The most common type of refinance.
Cash-Out Refinance
Borrow more than you owe and receive the difference as cash. Used for home improvements, debt payoff, etc.
Cash-In Refinance
Pay down your balance at closing to reduce your LTV, qualify for better rates, or eliminate PMI.
Streamline Refinance
Simplified refi for FHA, VA, or USDA loans — less paperwork, no appraisal in many cases.
In-Depth Guides
Cash-Out Refinance Explained
How cash-out refinancing works, when it makes sense, and how to qualify.
Refinance Closing Costs
What you'll pay to refinance, how to reduce costs, and when a no-cost refi makes sense.
When Should You Refinance?
The break-even rule, rate-drop thresholds, and life events that signal it's time to refinance.
Frequently Asked Questions
How much does it cost to refinance?
Refinancing typically costs 2–5% of your loan amount in closing costs. On a $400,000 loan, expect $8,000–$20,000. Some lenders offer no-closing-cost refinances where fees are rolled into the rate.
How long does it take to refinance?
Most refinances take 30–60 days from application to closing. The timeline depends on your lender, your financial complexity, and appraisal scheduling.
What credit score do I need to refinance?
Conventional refinances typically require a 620+ credit score, but 740+ gets you the best rates. FHA refinances allow scores as low as 580.
Can I refinance if I'm underwater on my mortgage?
If you owe more than your home is worth, standard refinancing is difficult. However, programs like the Fannie Mae High LTV Refinance Option (HIRO) may help.
See if refinancing makes sense for you
Compare today's refinance rates from top lenders.
Compare Refinance Rates