Refinance

Rate-and-term keeps your loan balance the same (give or take rolled-in closing costs) and changes the rate, term, or both. Cash-out increases your loan balance and gives you the difference in cash at closing. Pricing is different — cash-out typically carries a slightly higher rate. Most refi conversations start with which one you actually need: if you don't need cash, do rate-and-term (cheaper); if you need cash, do cash-out (broader use).

The textbook answer is when rates drop enough that your break-even fits inside how long you'll keep the home. Practically, a 0.50–0.75% rate drop is usually enough on a typical loan to pencil within 18–24 months. Beyond pure rate, there are other good triggers: your credit improved meaningfully since your purchase, your home appreciated enough to drop PMI, you need to shorten the term to retire on time, or you have high-rate debt that mortgage-rate money can refinance.

For a rate-and-term refi, very little — conventional goes to 95–97% LTV, FHA to 97.75% LTV, VA IRRRL has no LTV limit. For cash-out, you need more equity: 20% remaining after the cash-out on conventional and FHA, 10% remaining on VA. Streamline refis (FHA Streamline, VA IRRRL, USDA Streamlined-Assist) often skip the appraisal entirely, so current LTV isn't recalculated.

Typical closing costs run $2,500–$6,000 depending on your loan size, state, and which program. The biggest pieces are the appraisal ($500–700), title insurance, recording fees, and our origination. Streamline refis often skip the appraisal, which is a meaningful chunk. We always quote real numbers up front — no surprises at closing.

Standard refi: 30–45 days, sometimes faster. Streamline refis (FHA Streamline, VA IRRRL, USDA Streamlined-Assist) are faster because there's less documentation and often no appraisal — 21–30 days is typical. RefiNow / Refi Possible track close to standard timelines.

Yes — and it's one of the best reasons to refi if your home has appreciated. On conventional, PMI is removable once you reach 80% LTV based on either the original value (you can request it) or current value (you need a new appraisal). A refinance is a clean way to drop PMI when the home has gained value: new loan, new (lower) LTV, no PMI. The math: PMI typically costs 0.3–1.5% of the loan annually — on a $300K loan that's $75–$375/month, which a refi pays back quickly. On FHA, MIP is for the life of the loan on most loans originated after June 2013 — the only way to drop it is to refi out of FHA into a conventional loan once you have 20% equity.

A refi where the closing costs are covered by a lender credit (built into a slightly higher rate) instead of paid by you out of pocket. You don't literally pay nothing — you pay over time through a marginally higher rate. The math: no-cost makes sense when your break-even on the lower-rate-but-paid-costs version is longer than you plan to stay, or when you don't have the cash to pay closing. We model both side-by-side.

RefiNow is Fannie Mae's special refinance program for borrowers earning at or below 100% of the area median income for their census tract. It comes with a $500 lender credit toward the appraisal, allows DTI up to 65%, and offers fixed-rate terms only (10/15/20/30). Qualification: your existing loan has to be owned by Fannie Mae (we check that for free in seconds), the loan needs to be at least 12 months seasoned, your new rate has to be 0.50%+ lower than your current rate AND the new total payment lower, and your last 6 months can't have any 30-day lates. If you bought during the rate spike of 2022–2024 with a Fannie-owned loan, this is one of the most underrated programs available — call us, we'll check.

Freddie Mac runs a parallel program called Refi Possible (the rebrand of what was earlier called Refi Possible / formerly Enhanced Relief Refinance). Same general idea: low-to-moderate-income borrowers with a Freddie-owned existing loan, $500 lender credit toward appraisal, DTI flexibility, similar net-benefit and seasoning rules. We check which agency owns your existing loan and route you to the right program — borrowers usually don't know whether Fannie or Freddie owns their loan.

Streamline refinances are program-specific fast-track refis for existing FHA, VA, or USDA borrowers. Each program waives most documentation and usually the appraisal: FHA Streamline doesn't verify income or DTI; VA IRRRL doesn't either, and has a reduced funding fee; USDA Streamlined-Assist requires a $50/month minimum net benefit. The trade-off is they're rate-reduction (or term-change) only — no cash-out, no program-switching. If your existing loan is already FHA, VA, or USDA, and rates have dropped, streamline is almost always the cheapest path.

Yes, but most programs have a minimum seasoning period. Conventional rate-and-term: no specific seasoning rule, but you generally need at least a couple of months of payment history. Conventional cash-out: 6 months. FHA Streamline: 6 months. FHA cash-out: 12 months. VA IRRRL: 7 months (the later of 6 months of payments or 210 days from the first payment). USDA Streamlined-Assist: 12 months. So a true "right after closing" refi is rare; "a few months later when rates dropped" is common.

Depends on cash flow. The monthly payment on a 15 is meaningfully higher than a 30 at the same balance — sometimes 40–60% higher — but you save a staggering amount of lifetime interest and own the home outright in half the time. We run both scenarios for you. A common middle path: refinance into a new 30-year at a lower rate, then just make extra principal payments equivalent to a 15-year amortization. You get the cash-flow flexibility of the 30 with most of the equity-building benefit of the 15.