Mortgage Refinance

Restructure your mortgage around today's goals

What is a refinance loan?

Refinancing replaces your existing mortgage with a new one. Borrowers refinance to lower a rate, shorten a term, remove mortgage insurance, switch out of an adjustable rate, or convert equity into cash. The right answer is arithmetic, not a sales pitch: a refinance makes sense when the monthly benefit repays the closing costs well before you expect to sell or refinance again.

Ideal for: Homeowners whose rate is meaningfully above current pricing, borrowers paying FHA mortgage insurance who now have 20% equity, and anyone needing to convert equity into cash for a defined purpose.

Key Benefits

  • Lower your interest rate or monthly payment
  • Shorten your term to build equity faster
  • Remove FHA mortgage insurance by moving to conventional
  • Convert an adjustable rate into a fixed payment
  • Access equity for renovations or debt consolidation
  • Streamline options for existing FHA and VA loans

    • How Mortgage Refinance Work

    Define the goal first

    Lower payment, shorter term, drop mortgage insurance, or pull cash out. Each goal points to a different structure, and some can be combined.

    Check equity and credit

    Rate-and-term refinances typically want at least 5% equity; cash-out generally requires you to leave 20% in the home. Credit determines pricing just as it did on the purchase.

    Run the break-even

    Divide total closing costs by the monthly savings. If you will stay in the home well past that break-even month, the refinance pays for itself.

    Close in 2–4 weeks

    Appraisal waivers are common on low-loan-to-value refinances, which shortens timelines. Rescission rules give primary-residence refinances a three-day cancellation window after signing.

    Mortgage Refinance Requirements at a Glance

    Minimum credit score

    620 conventional; lower on VA/FHA streamlines

    Equity needed

    5%+ rate-and-term; 20% retained for cash-out

    Max debt-to-income

    Typically 45%–50%

    Appraisal

    Often waived at low loan-to-value

    Timeline

    Usually 2–4 weeks

    What it costs

    Refinance closing costs generally run 2%–4% of the loan amount and cover title, appraisal, recording, and lender fees. Costs can be rolled into the balance or offset by a slightly higher rate — we show both so the break-even is visible.

    Things to Consider

  • Closing costs reset — always calculate the break-even
  • Restarting a 30-year term can increase total interest paid
  • Cash-out pricing is higher than rate-and-term
  • Consolidating unsecured debt moves it onto your home

    • Mortgage Refinance FAQs

    How much lower does the rate need to be to refinance?

    There is no universal rule. Compare total closing costs to the monthly savings and look at the break-even month against how long you plan to keep the home.

    What is a cash-out refinance?

    You borrow more than you owe and receive the difference in cash at closing. Most programs require you to keep at least 20% equity in the home.

    Can I refinance to remove mortgage insurance?

    Yes — this is the standard way FHA borrowers eliminate lifetime MIP once they reach about 20% equity.

    Does refinancing hurt my credit?

    A hard inquiry causes a small temporary dip. Multiple mortgage inquiries within a short shopping window are treated as one.

    What Our Clients Say

    Rated 5.0 stars across 64 Google reviews. Don't just take our word for it — see what our satisfied clients have to say about their experience with RealMortgage.

    64 Five-Star Reviews

    Rated 5.0 on Google

    Compare Other Loan Programs

    Ready to Explore Mortgage Refinance?

    Our licensed mortgage experts will guide you through every step. Get your free, no-obligation rate quote today — no SSN required to start.