Rate & Term Refinance
Compare payment and term scenarios to accelerate your goals
Popular refinance scenarios
Rate and term refinancing can help you achieve different financial objectives.
Lower Your Rate
Reduce your interest rate to decrease monthly payments and total interest paid.
Shorter Term
Switch from 30 to 15 years to pay off faster and save thousands in interest.
ARM to Fixed
Convert adjustable-rate to fixed-rate for predictable payments.
Remove PMI
Reached 20% equity? Refinance to eliminate mortgage insurance.
See the potential impact
Rate Reduction Example
Loan Amount:
$400,000
Term:
30 years
Current Rate:
6.5%
Current Payment:
$2,528
New Rate:
5.0%
New Payment:
$2,147
Monthly Savings: $381
Total Savings: $137,160
30 to 15 Year Example
Loan Amount:
$300,000
Current Rate:
5.5%
30-Year Payment:
$1,703
Total Interest:
$313,000
15-Year Payment:
$2,451
Total Interest:
$141,000
Higher Payment: +$748/mo
Interest Saved: $172,000
*Examples for illustration only. Your actual savings depend on current rates and loan terms.
Streamlined refinance programs
FHA Streamline Refinance
For existing FHA loans. No appraisal, no income verification, minimal documentation.
- ✓Must reduce payment by 5% or more
- ✓No cash-out allowed
- ✓Current on existing FHA loan
VA Interest Rate Reduction Refinance (IRRRL)
For veterans with existing VA loans. Fast, simple refinancing to lower rates.
- ✓No appraisal or credit underwriting
- ✓Can finance closing costs
- ✓No out-of-pocket costs
Conventional Refinance
Most flexible option with competitive rates for borrowers with good credit.
- ✓Remove PMI at 20% equity
- ✓No upfront mortgage insurance
- ✓Flexible term options
Find out how much you could save
Get a personalized rate quote and see your potential monthly savings.
Rate & term refinance FAQs
Common questions about refinancing your rate or term.
The savings depend on your rate reduction, loan balance, and remaining term. As a rule of thumb, refinancing makes sense if you can reduce your rate by 0.5-1%. For a $300,000 loan, dropping from 6% to 5% saves about $180/month or $65,000 over 30 years.
A 15-year mortgage typically offers rates 0.5-1% lower than 30-year loans and saves significant interest over time. However, payments are higher. It's ideal if you can comfortably afford the payment and want to build equity faster or pay off before retirement.
Avoid refinancing if: you plan to move within 2-3 years (won't recoup closing costs), you're near the end of your loan term, you'd reset to a much longer term without benefit, or if closing costs exceed your savings.
Yes, through special programs. FHA Streamline and VA IRRRL refinances don't require appraisals. The HARP replacement programs help underwater borrowers. We'll review your options based on your current loan type and equity position.
Your break-even point is when monthly savings equal your closing costs. For example, if closing costs are $4,000 and you save $200/month, you'll break even in 20 months. Refinancing makes sense if you'll stay in the home past this point.
Yes! This is one of the most common reasons to refinance. Converting from an adjustable-rate to a fixed-rate mortgage provides payment stability and protection from future rate increases. It's especially smart when fixed rates are low.
Important Disclosures
Refinancing to a lower rate may result in higher total interest if extending loan term.
Shorter terms have higher monthly payments despite lower total interest costs.
Break-even calculations assume you remain in the home and don't refinance again.
Actual rates depend on credit score, LTV ratio, and other factors.