Understanding Mortgage Refinance
Refinancing replaces your existing mortgage with a new one. Homeowners refinance to lower their interest rate, shorten or extend the loan term, remove mortgage insurance, or switch from an adjustable rate to a fixed rate.
A refinance only makes sense when the long-term savings outweigh the closing costs. Jake will run the break-even math with you before you commit to anything.
Who it's a good fit for
- Homeowners whose credit or income has improved since they bought
- Borrowers with an adjustable-rate mortgage who want a fixed rate
- FHA borrowers looking to drop mortgage insurance by moving to conventional
- Anyone who wants to pay their home off sooner
Key details
- A rate-and-term refinance changes your rate and/or term without taking cash out.
- Streamline options exist for some FHA and VA loans and may need less documentation.
- Closing costs apply and can sometimes be rolled into the new loan.
- We calculate how many months it takes for your savings to cover your costs.
Refinance questions
When does refinancing make sense?
Generally when the new loan saves you more over the time you plan to stay in the home than it costs to close. Jake will show you the break-even point in plain numbers.
Can I refinance out of an FHA loan?
Yes. Many homeowners refinance from FHA to a conventional loan once they have enough equity, which can remove FHA mortgage insurance.
How long does a refinance take?
Timelines vary with appraisal scheduling and documentation, but many refinances close within a few weeks.
Refinance financing around Eastern Washington
- Pullman, WA: Homeowners who bought when they first arrived at WSU often revisit their loan later.
- Whitman County, Washington: Rural homeowners can refinance to change their rate or term, with a rural appraisal.
- Adams County, Washington: Rural homeowners can revisit their rate or term with a rural appraisal.
- Garfield County, Washington: Long-time owners can revisit their rate or term without leaving town.
- Stevens County, Washington: Owners can revisit their rate or term once a home has gained equity.
- Ferry County, Washington: Lets long-time owners revisit their rate or term remotely.
- Pend Oreille County, Washington: Owners can revisit their rate or term without a trip to town.
Related programs
Cash-Out Refinance
Refinance for more than you owe and receive the difference in cash.
Learn moreHome Equity Line of Credit (HELOC)
A revolving credit line secured by your home that you draw on as needed.
Learn moreHome Equity Loan (HELOAN)
A fixed lump-sum second mortgage that leaves your first mortgage in place.
Learn moreInformation on this page is general and educational. Loan approval, terms and eligibility depend on your full application, credit, property and current program guidelines.