Refinance
Replacing the loan you have with one that fits better.
Drake explains this one himself
Every program on this site gets a short video from Drake — the same explanation he would give you on a call, so you can hear it before you ever have to make one.
This one has not been recorded yet. Until it is, the writing below covers the same ground.
What it is
Refinancing replaces your current mortgage with a new one. A rate-and-term refinance changes the terms of what you owe. A cash-out refinance borrows against the equity you have built and gives you the difference.
Whether it is worth doing is arithmetic, not opinion. It depends on your current loan, your costs to refinance, and how long you plan to stay. I will show you the maths either way, including when the answer is no.
Who it may suit
- Homeowners whose situation has changed since they closed
- Homeowners carrying FHA mortgage insurance who now have meaningful equity
- Homeowners considering borrowing against equity for a specific purpose
Worth knowing
- Refinancing has closing costs. The honest question is how long it takes to recover them.
- A cash-out refinance increases what you owe against your home.
- Resetting to a new term can lower a payment while increasing what you pay over the full life of the loan.
General information only. Program guidelines change, and what you qualify for depends on a full review of your situation. Nothing on this page is a commitment to lend or an offer of credit.
Not sure whether Refinance is the one?
That is the normal position to be in. Six short questions and I will tell you which programs are actually worth comparing for your situation.