Refinancing involves paying off your current mortgage with a new loan, typically with updated terms. The new loan may offer:
Expect fees for appraisal, origination, title search, and more (typically 2–5% of the loan amount).
Calculate the break-even point: How long it takes for monthly savings to outweigh upfront costs.
Extending your term may lower payments but increase total interest paid over time.
Most lenders require at least 20% equity for a conventional refinance (or 10% for FHA).
Refinancing involves a hard credit inquiry, which may temporarily lower your score.
Check if your current loan penalizes early payoff.
