Refinance
5 min read
Is refinancing worth considering? Questions to ask first
A short list of questions that help you decide whether a new loan makes sense for you.
Refinancing replaces your current mortgage with a new one. It can change your rate, your term or your loan type, but it also comes with costs, so it is worth asking a few questions first.
What do you want to change?
Be specific. You might want a different payment, a shorter term, a fixed rate instead of an adjustable one, or cash from your equity. Each goal points to a different type of refinance.
What will it cost, and how long will you stay?
Closing costs apply to a refinance. Divide those costs by the monthly difference in your payment to see roughly how many months it would take to earn them back. If you may move before then, a refinance may not make sense.
Also look at total interest. A lower payment from a longer term can mean paying more interest over the life of the loan.
A loan officer can compare your current loan with the options side by side. Figures on this site are illustrative and are not a rate quote or an offer to lend.
Rates and figures are illustrative, not a rate quote, loan offer or commitment to lend. A pre-approval is not a commitment to lend.
Run your own numbers
See an illustrative monthly payment
Enter a price, a down payment and a term in the Payment Planner. Figures are illustrative only.
Keep reading
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Your pre-approval checklist
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