Thinking about refinancing?
Let us help review options to see if we can lower your rate and payment. No Processing or Underwriting Fees on our Mortgage Refinances.
(No SSN or Credit Check Required for Estimate)
Common reasons to refinance
- Lower Your Mortgage Payment with a Lower Rate
- Reduce Your Term (Pay off your loan sooner)
- Pull Cashout for renovations, savings, etc.
The three kinds of refinance
Refinancing just means replacing your current mortgage with a new one that serves you better. There are three main flavors, and picking the right one is most of the work:
- Rate-and-term refinance. Same loan balance, better terms: a lower rate, a lower payment, or a shorter payoff. The classic refinance.
- Cash-out refinance. One new, larger loan that pays off your current mortgage and puts the difference in your pocket, for renovations, debt consolidation, or investing.
- Streamline refinance. If you have an FHA or VA loan today, there are simplified programs (FHA Streamline and the VA IRRRL) with less paperwork and a faster close. The VA IRRRL even carries a much smaller funding fee, currently 0.5%.
Because we shop 40+ lenders with $0 processing or underwriting fees, we can price all three paths and show you the honest winner.
When refinancing makes sense (and when to wait)
A refinance has to earn its keep. Worth a serious look when: rates have dropped meaningfully since you got your loan, you want to drop FHA mortgage insurance by moving to a conventional loan, you are consolidating high-interest debt into one lower payment, you are moving from an adjustable rate to a fixed rate, or you want to shorten your term and pay the home off sooner.
Probably wait if: you plan to sell before the savings cover the closing costs, or your current rate is already better than anything we can find you. Yes, we will tell you that.
The math is called the break-even: divide the closing costs by your monthly savings, and that is how many months until the refinance pays for itself. Stay past that point and everything after is savings. And on many programs we can use a lender credit to cover some or all of the closing costs for you, in exchange for a slightly higher rate, which can shrink the break-even to almost nothing. We run both versions of the math for you before you commit to anything.
Need cash from your home? Compare the three paths
| Cash-out refinance | HELOC | Home equity loan | |
|---|---|---|---|
| What it is | One new, larger first mortgage | A reusable credit line behind your mortgage | A fixed second loan behind your mortgage |
| Your current mortgage | Replaced | Untouched | Untouched |
| Rate type | Fixed or adjustable | Usually adjustable | Fixed |
| How you get funds | Lump sum at closing | Draw as you need it | Lump sum |
| Best when | A new first mortgage also improves your rate | You want flexibility, or your current rate is too good to give up | You want one fixed payment and your current rate is too good to give up |
There are also hybrid options in between. See the full comparison on our HELOC page, or get custom cashout rates with no SSN or credit check required for an estimate.
Navigating your home refinance journey with us
- 1Tailored Mortgage Assessment. Request a custom analysis for your situation
- 2Explore Mortgage Choices & Advice. Receive options and get financial recommendations
- 3Select Your Ideal Mortgage Solution. Choose the option that works best for you
- 4Close in Under 30 Days. We start the loan process and close in well under 30 days (on average)
Evan and his team were quick, efficient, and communicative throughout my refinance. Highly recommend Modern Home Lending to any future or current home owner!
Dylan Lesan
Refinance FAQs
How long does a refinance take?
Well under 30 days on average. Streamline programs can be faster.
How do I know if refinancing is worth it?
The break-even test: closing costs divided by monthly savings equals the months until it pays for itself. If you will be in the home past that point, it is usually worth it. We run the number for you, including a version where a lender credit covers the costs.
Can I refinance to get rid of mortgage insurance?
Often, yes. If you have an FHA loan, refinancing into a conventional loan once you have enough equity is the standard way to drop MIP. On a conventional loan with PMI, a refinance is one of the ways it comes off.
Can I refinance without paying closing costs out of pocket?
Usually, yes. Costs can often be rolled into the loan, and on many programs we can use a lender credit to cover some or all of them in exchange for a slightly higher rate. We show you both versions of the math.
How soon after buying can I refinance?
Sometimes right away, though some programs have short waiting periods. If rates have moved since you closed, it costs nothing to check.
Will you tell me if refinancing is a bad idea?
Yes. If the math does not work, we say so. RefiRadar can watch rates for you and flag when it is actually worth revisiting.
What if my home’s value has gone up?
Rising value helps: it can remove mortgage insurance, unlock cash-out options, or improve your pricing tier. A quick review tells us which applies.