Refinance
Refinancing replaces your current mortgage with a new one — to lower your rate, shorten your term, switch from an adjustable to a fixed rate, or take cash out of your equity.
Best for: Homeowners who want a lower payment, a shorter term, or to access equity.
Key features
- Rate-and-term refinance to lower your payment
- Cash-out refinance to use your equity
- Switch from an ARM to a fixed rate
- Potentially remove FHA mortgage insurance by going conventional
Typical requirements
- Enough equity (cash-out usually needs 20% remaining)
- Credit and income that meet the new loan's guidelines
- Closing costs apply — weigh them against your monthly savings
- A new appraisal in most cases
Refinance FAQ
When does refinancing make sense?
When the monthly savings recoups the closing costs within a reasonable time, when you want to shorten your term, or when you need to access equity. A quick calculation — or a broker — can confirm.
What is a cash-out refinance?
You refinance for more than you owe and take the difference in cash, using your home's equity. It typically requires you to keep at least 20% equity.
Will refinancing reset my loan to 30 years?
It can, but you can also refinance into a shorter term (e.g., 15 or 20 years) to pay off your home faster, often at a lower rate.
See any unfamiliar terms? Check the mortgage glossary.
Refinance by state
Explore refinance in the markets we serve: