Refinance
A refinance should be evaluated against closing costs, time horizon, loan term, total interest, equity, and the job you need the new loan to do.
A good first step
Ask the question you have right now.
Rate-and-term
This route may change the interest rate, loan term, or loan type without primarily converting equity to cash.
Compare the new payment and total cost
Estimate the break-even horizon
Account for years already paid
Review mortgage-insurance changes
Cash-out / equity
A cash-out refinance may turn eligible equity into proceeds, but it also changes the balance, payment, rate, term, and long-term interest profile.
Clarify the purpose for the proceeds
Compare alternatives and total cost
Preserve an appropriate equity position
Understand payment and term changes
Before you decide
How long do I expect to keep this loan?
What are the estimated closing costs?
How many years will be added or removed?
What happens to total interest?
Will mortgage insurance change?
Is the new cash flow worth the tradeoff?
Bring the statement. We’ll compare the structure, not just the headline payment.
