Refinancing replaces your current mortgage with a new one — to change the rate, the term, or to convert home equity into cash. Whether it’s worth doing comes down to one honest calculation: how many months of savings it takes to recover the closing costs. That break-even number — not a headline rate — is the entire decision, and we’ll happily tell you when the answer is “keep the loan you have.”
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Main flavors: rate-and-term (change the loan) and cash-out (tap the equity)
Break-even
The only number that decides: months of savings needed to recover closing costs
20%
Equity where conventional PMI can be removed — sometimes a refinance’s whole payoff
80%
Typical maximum loan-to-value on a conventional cash-out refinance
Guidelines reflect current program rules as of August 12, 2026. Every quote we issue includes full cost detail and APR — the break-even math only works with honest inputs.
If you’ll likely sell before break-even, the refinance loses money no matter how good the new rate sounds. Restarting a 30-year clock deep into your current loan can cost more in added interest than the payment drop saves. And consolidating unsecured debt onto your house trades flexibility for a lien — sometimes wise, never automatic. A refinance is a purchase: you’re buying a new loan with real money in costs. We’ll price it like one, show you the break-even, and respect whichever answer the math gives.
Divide the total closing costs by the monthly savings — that’s your break-even in months. If you’ll comfortably keep the loan past that point, it pencils; if not, it doesn’t. Our break-even calculator runs it in a minute, and we’ll gladly check your math with real quotes.
Real closing costs — title, appraisal, origination — just like a purchase. “No-cost” refinances exist, but the costs live in the rate rather than disappearing, which changes the break-even rather than eliminating it. Every quote we issue itemizes the costs and the APR so you’re comparing whole loans, not headlines.
Conventional cash-out typically allows borrowing up to 80% of your home’s value, minus what you owe. VA cash-out can reach higher for eligible veterans. Whether cash-out beats a HELOC or second mortgage depends on your current rate and how much you need — we compare all three structures rather than assuming.
Once you’ve built roughly 20% equity, often yes — FHA’s mortgage insurance typically runs for the life of the loan at the minimum down payment, and shedding it is savings independent of rate. The FHA streamline (refinancing FHA-to-FHA with reduced documentation) is the other path when conventional doesn’t fit yet. We’ll run both against keeping your current loan.
Only if you choose a fresh 30-year term — and deep into a loan, that restart has a real interest cost hiding under the lower payment. Alternatives: match the new term to your remaining years, or take the 30-year payment flexibility and keep paying the old amount. We’ll show the total-interest picture for each so the payment drop doesn’t make the decision alone.
Sixty seconds with the calculator tells you whether the conversation is worth having — then we’ll verify it with real quotes and honest math. No consultation fees, ever.
Refinancing may increase the total finance charges paid over the life of the loan. Whether refinancing benefits you depends on your individual circumstances, loan terms, and how long you keep the loan; savings are not guaranteed and any comparison we provide is specific to quotes disclosed with full terms and APR. This page is educational and is not a commitment to lend; all loans are subject to underwriting and approval.
