Define what you want to change
A refinance can change your payment, term, interest structure, or access to equity. These are different goals and may have different tradeoffs. Start with your current balance, rate, payment, and remaining term.
Compare costs and timing
For cash-paid closing costs, a simple payment break-even estimate divides those costs by a positive monthly principal-and-interest reduction. It excludes changing insurance, taxes, time value of money, and differences in equity over time. Financing costs requires a different comparison because it increases your balance.
Look beyond a lower payment
Extending your term can lower the payment while raising total interest. A cash-out refinance also increases debt secured by your home. Compare the full costs and alternatives for the time you expect to keep the loan.
Explore a refinance scenarioContinue learning
Use the CFPB’s Owning a Home resources to review the lending process and compare official loan documents. These guides are general education, not individualized financial advice.