Loan Programs
Refinance Your Mortgage
Refinancing replaces your current mortgage with a new one — potentially at a lower rate, shorter term, or with access to your home's equity. Whether you want to reduce monthly payments or fund a major goal, refinancing is worth evaluating periodically.
Types of Refinance
Rate-and-Term Refinance
The most common type of refinance. You replace your existing loan with a new one that has a different interest rate, loan term, or both — without taking additional cash out. The goal is typically to lower your monthly payment, reduce total interest paid, or pay off the loan faster.
For example, switching to a shorter term increases your monthly payment but may reduce the total interest paid.
Cash-Out Refinance
A cash-out refinance lets you borrow more than your current loan balance and receive the difference as cash. Homeowners commonly use this to fund home improvements, consolidate higher-interest debt, cover education costs, or invest in other properties.
The amount you can access depends on your home's current value and how much equity you have built. Most programs allow up to 80% loan-to-value, though some go higher.
Streamline Refinance
If you currently have an FHA, VA, or USDA loan, you may qualify for a streamline refinance with reduced documentation and faster processing. These programs are designed to lower your rate with minimal hassle — often without a new appraisal or income verification.
The VA Interest Rate Reduction Refinance Loan (IRRRL) and FHA Streamline are the most common examples. They are specifically designed to benefit borrowers who are current on their existing government-backed loan.
When Does Refinancing Make Sense?
Refinancing involves closing costs, so it is important to evaluate whether the long-term savings outweigh the upfront expense. Here are common scenarios where refinancing is worth exploring:
- •Your current rate is significantly higher than what is available today
- •You want to switch from an adjustable rate to a fixed rate for payment stability
- •You have built substantial equity and want to access it for a specific purpose
- •You want to shorten your loan term and pay off your home sooner
- •You want to remove FHA mortgage insurance by refinancing into a conventional loan
- •You need to remove or add a borrower from the mortgage (such as after a divorce)
The Break-Even Calculation
A simple way to evaluate a refinance is the break-even point: divide your total closing costs by the monthly savings. The result is the number of months it takes for the refinance to pay for itself. If you plan to stay in the home longer than that, the refinance likely makes financial sense.
For homeowners in Altamonte Springs and surrounding communities, we provide a detailed comparison showing your current loan terms versus proposed new terms so you can make an informed decision.
Frequently Asked Questions
How much does it cost to refinance?
Refinance closing costs typically range from 2% to 5% of the loan amount, depending on the loan size and specifics. Some lenders offer no-closing-cost options where fees are rolled into the rate or loan balance.
How long does a refinance take?
Most refinances close in 30 to 45 days from application. Streamline refinances with reduced documentation can sometimes close faster. Timelines depend on appraisal scheduling, title work, and documentation turnaround.
Will refinancing hurt my credit score?
A refinance application results in a hard credit inquiry, which may cause a small, temporary dip. If you are rate shopping within a 14 to 45 day window, multiple mortgage inquiries are typically treated as a single inquiry by scoring models.
Can I refinance if I have an FHA loan?
Yes. You can use an FHA Streamline to lower your rate with minimal documentation, or refinance into a conventional loan to eliminate FHA mortgage insurance if you have built sufficient equity.
Get a Free Refinance Analysis
Wondering if refinancing makes sense for your situation? Share your current loan details and we will run the numbers for you — no obligation.
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