Quick answer
Refinancing replaces your current mortgage with a new loan. It tends to make sense when the new rate, term or payment improves your situation enough to recover the closing costs within the time you expect to keep the loan. Compare total interest, not just the monthly payment, and estimate your break-even period first.
Depending on the new interest rate, loan amount, term, and closing costs, refinancing may change your monthly mortgage payment. Compare the potential payment with your current costs before deciding whether to proceed.
Calculate My PaymentIf market conditions or your financial circumstances have changed, exploring available refinance rates may help you determine whether a new mortgage deserves consideration.
The rate you qualify for depends on factors such as your credit profile, loan details, property, and lender requirements.
Some homeowners refinance to move to a shorter or longer repayment period. A shorter term may increase the monthly payment while reducing total interest over the life of the loan. A longer term may lower the payment but increase total interest costs.
A cash-out refinance replaces your existing mortgage with a new loan and may allow you to receive some of your available home equity as cash, subject to lender requirements and applicable limits.
Compare this option with alternatives such as a home equity loan or HELOC before deciding.
Explore Cash-Out OptionsPlain-language definitions of the terms that come up most when you compare mortgage options.
Start by identifying your primary goal. You can then explore the relevant refinance pathway and determine whether you would like to continue with a participating lender, where available.
Refinancing is subject to lender approval, eligibility requirements, and property considerations. Estimates are informational only. Replacing a mortgage may involve closing costs and other expenses.