30-yr fixed6.75%+0.0315-yr fixed6.05%+0.00FHA 30-yr6.55%+0.08VA 30-yr6.38%+0.08Jumbo 30-yr6.82%+0.11Updated September 1, 2026
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Loan type

Refinancing

A refinance replaces your current mortgage with a new one, to lower the rate, change the term, or take cash out of your equity.

Compare your old loan and the new one

Who this is for

  • Homeowners whose current rate is meaningfully above today's rates
  • Anyone who wants to shorten to a 15-year term
  • Owners with equity who need cash for a defined purpose

How it works, step by step

  1. Work out the breakeven: closing costs divided by monthly savings gives the months until the refinance pays for itself.
  2. Remember that a new 30-year loan resets amortization. Compare total cost over the years you expect to keep the home, not just the payment.
  3. Shop the refinance exactly like a purchase: three or more lenders, compare APR.
  4. Ask about lender credits if you want to avoid paying closing costs up front.

Pros

  • Lower payment or shorter term
  • Cash-out at mortgage rates, usually lower than personal loans or cards
  • Can remove mortgage insurance once you have 20% equity

Cons

  • Closing costs of roughly 2% to 5% of the loan
  • Resetting to 30 years can cost more in total interest even at a lower rate
  • Cash-out refinances price higher than rate-and-term