Loan Tax CalculatorRefinancing
Refinancing Your Mortgage Guide
Comprehensive guide to mortgage refinancing. Learn when to refinance, how to calculate savings, understand closing costs, and explore different refinance options.
Key figures
- Break-even typically 2-3 years for rate-and-term refinances
- Closing costs: 2% to 5% of loan amount
- Average savings threshold: 0.5% to 1% rate reduction
- Refinance takes 30-45 days to complete
- Cash-out refinances allow accessing home equity at lower rates
Frequently asked questions
When does refinancing make sense?
Generally when you can lower your rate by 0.5-1%, and plan to stay in the home past the break-even point.
What are the types of refinances?
Rate-and-term (change rate/term, no cash out), cash-out (borrow additional funds), and streamline (accelerated approval for specific loan types).
Can I refinance with bad credit?
It's harder but possible, especially if you've improved since the original loan. FHA Streamline requires less documentation.
How long is the refinance process?
Typically 30-45 days from application to closing.
Should I refinance if I plan to move soon?
Usually not, unless the break-even point is well before you expect to move.
Tax outcomes depend on whether you itemize, your filing status, and local rules. These are estimates, not tax advice. A tax professional or lender can confirm the details for your situation.