Lower your rate
When today's rates are meaningfully lower than yours.
Watch for: The savings have to outrun the cost of the new loan.
Refinance
A refinance only makes sense if the math says so.
I'll run the numbers with you. If a refinance doesn't pay for itself, I'll tell you, even if that means no loan for me.
Why people refinance
Four reasons, and what to watch for
Shorten your term
Pay the house off sooner and pay less interest overall.
Watch for: The monthly payment usually goes up, so it has to fit your budget.
Take cash out
Use your equity for a renovation, to pay off debt, or for something big.
Watch for: You're borrowing against your home, so the reason has to be worth it.
Drop mortgage insurance
Get out from under mortgage insurance, often on an FHA loan.
Watch for: On a conventional loan, you may not need to refinance at all. See below.
Break-even
How long until it pays for itself?
Add up what the refinance costs. Divide by how much your monthly payment drops. That's how many months it takes to break even. If you'll sell or move before then, it doesn't pay for itself.
Break-even calculator
Your break-even
Enter both numbers
Your break-even shows here as soon as both boxes have a number.
Simple math on the numbers you enter. It's not a quote. Your Loan Estimate shows the real costs.
Joe Caleca, NMLS 2302900
Before you refinance
You might not need me for this
If you have a conventional loan and want to drop mortgage insurance, you can usually ask your loan servicer to remove it once you owe 80% of your home's original value. It comes off on its own at 78%. No refinance needed.
FHA mortgage insurance works differently, and a refinance is often the only way out. Not sure which kind you have? Text me and I'll help you check.
How mortgage insurance removal works (CFPB) →The honest cost list
What it costs, and when I'll say no
What a refinance costs
- Lender charges
- Title and attorney In South Carolina, an attorney runs the closing
- Appraisal, if one is needed
- Prepaid interest and escrow setup
- Recording fees
Your Loan Estimate shows the real numbers, line by line.
When I'll tell you not to do it
If you'll sell or move before break-even. If the cost eats the benefit. If the only pitch is a teaser rate that won't survive underwriting. I'll say no.
Keep reading
Where to look next
Questions I get a lot
Straight answers
How do I know if a refinance is worth it?
Add up the cost, divide by how much your monthly payment drops, and ask how long you'll keep the loan. If you'll be in it past that break-even point, it can make sense. If not, I'll tell you not to do it.
How soon can I refinance after buying?
It depends on the loan and the kind of refinance. Some can happen soon after closing, while cash-out refinances and some streamlined programs have waiting periods. Tell me when you closed and what you want to do, and I'll tell you what's open to you.
Can I drop PMI without refinancing?
Often, yes, on a conventional loan. You can usually ask your servicer to remove it once you owe 80% of your home's original value, and it comes off on its own at 78%. FHA mortgage insurance works differently. Tell me which loan you have and I'll walk you through your options.
Why do two lenders quote different rates for the same person?
Each lender prices risk its own way, and some want certain loans more than others. The same person can get very different quotes on the same day. That's why I shop your refinance across over 100 lenders instead of taking one quote.
I have a VA loan. Is there an easier way to refinance?
Often, yes. VA has a streamlined refinance, called an IRRRL, that usually means less paperwork. It has its own rules, and it still has to make sense on the math. I'll check whether it fits your loan.
Got a question that isn't here?
Text me. Every file is different, and I'll tell you what applies to yours.
Text (980) 987-1299 →
Joe CalecaSenior Loan Officer, Mpire FinancialNMLS 2302900
Let's run your numbers. If it doesn't make sense, I'll tell you.
This opens my secure application. It takes about fifteen minutes and you can stop and come back to it.