A fresh look at your mortgage.
Refinancing means paying off your current mortgage with a new one. People do it to change their payment, change the length of the loan, take cash out of their equity, or remove someone from the loan.
Who it is for
- Homeowners who want to change their loan term or payment
- Homeowners who want to use some of their equity
- Homeowners with an FHA or VA loan who may qualify for a streamlined refinance
- Homeowners who need to remove a co-borrower, such as after a divorce
What you will need
- Photo ID for each borrower
- Recent pay stubs and the last two years of W-2s, or tax returns if you are self-employed
- Recent statements for the accounts holding your down payment and reserves
- Permission to check your credit
- Your current mortgage statement
- Your homeowners insurance declarations page
Good to know
- A refinance has closing costs. The useful question is how long it takes for the benefit to pay those costs back.
- If you refinance to lower your monthly payment, your total finance charges may be higher over the life of the loan.
- FHA and VA loans have streamlined refinance options with less paperwork for borrowers who qualify.
- Use the refinance calculator to estimate your break-even point with your own numbers.
Common questions
How do I know if refinancing is worth it?
Compare what it costs to refinance with what you gain each month. Dividing the cost by the monthly benefit gives a rough break-even point. If you expect to keep the home longer than that, it may be worth a closer look.
What is a cash-out refinance?
It is a refinance for more than you currently owe, where you receive the difference in cash. It uses your home equity and increases your loan balance.
What is a streamline refinance?
It is a simplified refinance available on existing FHA and VA loans. It generally needs less documentation than a standard refinance.
Does refinancing restart my loan?
It starts a new loan. You can choose a term that matches the years you have left or a different one.
