See if a refinance fits your goals. Compare your options with Honest Rate.
Refinancing means replacing your current mortgage with a new one. Homeowners do it for many reasons. Some want a lower rate. Others want to change their loan term or use their home equity.
A refinance is not right for everyone. It has costs, and the numbers must add up. So, we help you compare your options before you decide.
There are a few common reasons.
Still, each goal has trade-offs. Let’s look at those next.
A refinance has costs. Here is what to keep in mind:
For this reason, compare the full cost with the savings. A good rule is to ask how long it takes to earn back your costs. If you plan to move before then, a refinance may not pay off. Our refinance calculator can help you test it.
Rate and term refinance. You change your interest rate, your loan term, or both. Your loan amount stays about the same.
Cash-out refinance. You take out a bigger loan than you owe. Then you receive the difference in cash. People often use it for home repairs, debt, or business needs.
Streamline refinance. Some FHA and VA loans have simpler refinance options. They may need less paperwork. Ask us if you qualify.
Lenders look at the full picture. First, they review your credit history. Next, they check your income and monthly debts. They also look at your home’s value and how much you still owe. Finally, they consider the loan type you want.
Rules vary by lender and loan. For example, cash-out loans often have stricter limits. So, ask us how your numbers look. To estimate your home’s worth, try our home values tool.
We offer many kinds of loans. Here are a few:
Not sure which one to pick? We can compare several for you.
Getting started is simple.
It may make sense when the new loan helps you meet a goal and the savings outweigh the costs. For example, you may want a lower rate or a shorter term. Compare the numbers first.
A refinance usually has closing costs. They vary by loan and lender. We can show you the estimated costs before you decide.
Not always. A lower rate or longer term may lower it. In contrast, a shorter term often raises it. It depends on the loan you choose.
Often, yes. A cash-out refinance lets you use your equity. However, it also increases what you owe. So, think about how you will use the money.
Yes, you may have options. Some programs use bank deposits instead of tax returns to show income. See our bank statement loans page.
Each loan is different. Still, having your documents ready can keep things moving. Pay stubs, bank statements, and your current mortgage statement are a good place to start.
That depends on your plans. To compare, try our rent vs. buy calculator or mortgage calculator.
Refinancing is a big decision. That is why we give clear answers and simple options. As a mortgage broker, we can compare more than one path for you. Check your options today. Then decide if a refinance fits your plans.
Refinancing is the process of paying off your existing mortgage with a new mortgage. Typically, you refinance your mortgage to reduce your interest rate and monthly payment or change the length (or term) of your mortgage. You may also refinance to take cash out from your home’s equity.
