Your Refinance Strategy

Start with the break-even

Every refinance has a cost, so the first question is always the same: how many months of savings does it take to earn that cost back? Divide what the refinance costs by the monthly payment you would save, and you get your break-even in months. If you will keep the home comfortably past that point, a rate-and-term refinance to lower your payment is usually a clear win. If you plan to sell or move before then, it often is not, no matter how tempting the new rate looks.

Match the move to the goal

• Lower the payment. Rates or your credit improved since you closed? A rate-and-term refinance can cut the monthly cost. We will show you the break-even so you know it is worth it.
• Shorten the term. Moving from a 30-year to a 20 or 15 can save a large amount of interest and pay the loan off years sooner, often with a smaller payment jump than people expect.
• Tap equity. A cash-out refinance turns built-up equity into funds for renovations, debt consolidation, or investing, typically at a far lower rate than other borrowing.
• Drop mortgage insurance. If you are on an FHA loan and your equity and credit have grown, refinancing into a conventional loan can remove mortgage insurance you no longer need.

Timing without the guesswork

Nobody can call the bottom of the rate market, and chasing it usually costs more than it saves. The smarter approach is to know your break-even, know your plans for the home, and be ready to move when the numbers make sense for you specifically. We will keep an eye on it with you and tell you honestly when it is worth acting and when it is not.