5 guides, read top to bottom, take you from When Does Refinancing Make Sense? The Break-Even Test to A Refinance Readiness Checklist.
Read in this order
How to weigh refinance closing costs against monthly savings and other goals before you apply.
- Divide your total refinance closing costs by your expected monthly savings.
- Resetting the term: a new 30-year loan on a mortgage you have paid for years can lower the payment but increase total interest.
- Refinancing After a Life Change1 min read
How marriage, divorce, inheritance or a job change affects a refinance.
- Removing an ex-spouse from the loan usually requires a refinance in the remaining borrower’s name.
- Adding a spouse can add income but also adds their credit and debts.
Situations where a refinance can make sense, and why timing the market exactly is rarely possible.
- Higher credit scores, more equity, a change from adjustable to fixed preferences, or a need to remove a co-borrower can all justify a refinance regardless of market moves.
- If your home value rose or your balance fell enough, refinancing may eliminate mortgage insurance.
Common errors homeowners make when refinancing, from restarting the clock to ignoring escrow.
- Refinancing a loan that is years into its schedule into a new long term can lower the payment but increase total interest.
- Financing closing costs increases the balance and interest.
- A Refinance Readiness Checklist1 min read
What to have in place, and what to check, before you apply to refinance an existing mortgage.
- Find your latest mortgage statement and note the principal balance, interest rate, remaining term, escrow amount and whether you pay mortgage insurance.
- Write down what the refinance is meant to do: lower the monthly payment, shorten the term, remove mortgage insurance, switch from an adjustable to a fixed rate, or take cash out.
Run your own numbers
4 calculators on this site, all blank until you type:
Check which programs fit
The loan finder asks six questions and points you to the programs worth reading about, with a side-by-side comparison table. It is education, not an eligibility decision.
Terms you will meet in these guides
- Loan Estimatefirst in Refinance Timing: Signs It May Be Worth a Look
- Lender creditfirst in Refinance Mistakes That Erase the Savings
- Appraisalfirst in Refinance Mistakes That Erase the Savings
- Servicerfirst in Refinance Mistakes That Erase the Savings
- Closing Disclosurefirst in A Refinance Readiness Checklist
Everything here is general education. Program rules change; confirm current requirements with the official sources below and with a licensed lender.
Sources
- CFPB: Ability-to-repay rule
- Fannie Mae Selling Guide
- CFPB: When can I remove PMI?
- CFPB: Loan Estimate explainer
- CFPB: Closing Disclosure explainer
Sources reviewed . This page was assembled from the guides on this site.