Refinancing replaces your current mortgage with a new one — ideally with better terms. It can lower your rate, change your loan term, or let you tap equity. Here's how to think about it.
Rate-and-term vs. cash-out
A rate-and-term refinance changes your interest rate and/or loan length without taking cash out. A cash-out refinance borrows against your equity, giving you a lump sum but increasing your loan balance.
The break-even point
Refinancing has closing costs. Divide those costs by your monthly savings to find the number of months to “break even.” If you'll stay in the home past that point, refinancing may pay off.
Other considerations
Resetting a 30-year loan can lower payments but stretch out total interest. Streamline programs (like the VA IRRRL or FHA Streamline) can simplify refinancing for existing government-backed loans.
Refinancing — in your city
City-specific refinancing guides for buyers and owners. Each page includes the local loan limits, neighborhoods, programs, and a calculator pre-loaded with the city median.