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Refinancing Tips
When a refinance pays off, and how to run your own break-even math.
Overview
A refinance is worth doing when the savings recover the cost within a period you'll actually stay in the loan — and when you aren't quietly restarting a 30-year clock for a small monthly win. These guides cover rate-and-term versus cash-out, removing mortgage insurance, shortening the term, and the break-even arithmetic you can run yourself in a couple of minutes.
Who this is for: Current homeowners considering a refinance or cash-out.
What you'll learn
- •Break-even: total cost divided by real monthly savings
- •Rate-and-term versus cash-out pricing and appraisal requirements
- •Dropping mortgage insurance as your equity grows
- •Why resetting to a new 30-year term can cost more than it saves
4 guides in this topic
Refinancing TipsA 1% Rate Drop Can Cut Your Principal & Interest Payment About 10%
Mortgage Refinance Rule of Thumb: A 1% Rate Drop Can Cut Your Principal & Interest Payment About 10%. When mortgage rates fall, homeowners often ask the same question: “How much lower does my rate need to go before refinancing makes sense?” There is no single answer that works for everyone, but there is a simple rule of thumb that can help you quickly estimate the potential savings:
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Refinancing TipsWhen Does a Refi to a Higher Rate Make Sense?
If you have a 3% mortgage rate, refinancing into a 6% mortgage probably sounds crazy. Why would anyone voluntarily give up a 3% mortgage? In most situations, you wouldn't. But there is one situation where refinancing to a higher mortgage rate can potentially make financial sense: you have substantial home equity AND you're buried in high-interest consumer debt.
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Refinancing TipsRefinance — Is It Worth It?
Refi tip----for every one percent in reduction from your current rate it will reduce your current principal and interest (PI) portion of your monthly payment by about 10%, a 2% reduction will reduce your PI payment by about 20%
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Refinancing TipsTrack your home value for free
Your home may be your biggest financial asset. But if you don't know what it's worth today—or how much equity you've built—you could be overlooking valuable financial opportunities.
Read the guide →Get a straight answer today
No credit pull to start, no sales pressure, and a real quote you can compare line by line against any bank or big lender.