Refinance

Refinance — only when it actually makes sense.

Refis only work when the math works. I'll be straight with you. Sometimes the answer is "do this tomorrow." Sometimes it's "wait six months." Either way, you'll know.

When it makes sense

Good reasons to refinance.

There's no one rule. But here's when a refi is usually worth a serious look:

Rates dropped meaningfully.
Rule of thumb: if you can drop your rate by 0.75% or more, it's worth running the math.
You need cash.
A cash-out refi can fund renovations, pay off high-interest debt, or invest. Usually cheaper than a HELOC if rates are favorable.
You want to drop PMI.
If you're on an FHA loan and have built equity, refinancing to a conventional can kill your PMI payment for good.
Your credit got better.
Significant credit score improvement since you bought? You may qualify for a much better rate now.

When it doesn't

And when I'll tell you not to.

I'd rather lose a deal than put you in a bad one. Honest reasons to wait:

You're moving in 1-2 years.
Closing costs need time to pay back. If you're moving soon, the math probably doesn't work.
You'd reset to a new 30-year clock.
If you're 8 years into a 30-year and refi back to 30, you may pay more interest long-term even at a lower rate. We'll model both.
Your low rate is already locked in.
If you have a 3% rate from 2021 and current rates are 6.5%+, don't touch it unless you genuinely need the cash.
The savings are too small.
If we're talking $30/month in savings on $5K of closing costs — that's 14 years to break even. Skip it.

Types of refi

The four flavors.

01

Rate-and-term

Most common. Lower your rate, change your term (e.g., 30 → 15), or both. No cash taken out.

02

Cash-out

Borrow against your equity. Get a check at closing. Useful for renovations, debt consolidation, or investments.

03

FHA Streamline

If you currently have an FHA loan, this is the fast-track refi. Less paperwork, sometimes no appraisal.

04

VA IRRRL

The VA's version of a streamline refi. Easiest refi in the entire industry if you're on a VA loan.

Refi FAQ

Common questions.

How much can I actually save?

Depends on your current rate, the new rate, your balance, and your closing costs. I'll run the exact numbers on a quick call — including the break-even point so you know how long it takes for the savings to outweigh the costs.

What does it cost to refinance?

Typically 2-4% of the loan amount in closing costs (lender fees, title, appraisal, etc.). On a $400K loan, that's $8K-$16K. Some refis let you roll those costs into the loan instead of paying out of pocket.

How long does a refinance take?

Usually 21-30 days from application to closing. Streamline refis (FHA/VA) can be faster — sometimes 2 weeks.

What if rates drop more after I refinance?

You can always refinance again. But you don't want to do it every six months — each refi costs money. We aim for a meaningful drop, then sit on it.

Will my mortgage payment go down?

Probably — that's usually the point. But if you do a cash-out refi or shorten your term (30 → 15), your payment can stay the same or go up. We'll model it both ways before you decide.

Curious what your numbers look like?

Send me your current rate and balance. I'll tell you in 24 hours whether a refi makes sense for you — and what it would actually save.