Refinance
Same home, a different loan.
A refinance replaces your current mortgage with a new one. Whether it makes sense depends on what you want to change, what it costs, and how long you expect to stay.
At a glance
Two paths, two different purposes.
A rate-and-term refinance changes the interest rate, the length of the loan, or both, rather than primarily taking equity out as cash. Eligible closing costs may sometimes be included in the new balance.
A cash-out refinance replaces your loan with a larger one and pays you the difference, drawing on the equity you have built in the home.
Common reasons people look
- Change the loan term
- Move from adjustable to fixed
- Adjust the monthly payment
- Use home equity as cash
- Remove or add a borrower
Is it a fit
Start with the reason, not the offer.
Often a good fit when
- You have a specific change in mind, such as a different term or a more predictable payment
- You expect to keep the home long enough to recover the costs of refinancing
- You have a clear purpose for any cash you would take out
Worth weighing
- Closing costs generally apply, and they come due whether or not you save
- Starting a new term can mean paying interest for longer overall
- Cash-out increases your balance and secures more borrowing against your home
- Savings are never guaranteed. They depend on your loan, the new loan, and how long you keep it
Costs and considerations
Weigh the costs, then find the break-even.
The honest question is not whether a new loan looks better today. It is whether the change pays for itself while you still own the loan.
Break-even, in one line
Total costs, divided by monthly savings.
If you might move or refinance again before that point, the change may not pay off. The calculator can help you test your own numbers.
Closing costs
Expect lender, title, appraisal, and other charges. Charles can give you an estimate for your situation before you decide anything.
Break-even
If the new loan produces monthly savings, dividing upfront costs by those savings gives a simple cash-flow break-even estimate. Also compare the loan term and total interest; this calculation does not include every difference.
Term and total interest
A longer term can lower a payment while increasing the total interest paid. A shorter term can do the reverse.
Equity and property value
What is available depends on your home's current value, what you owe, and how the home is used.
The process with Charles
Four steps, one person to call.
- Step 1
Talk with Charles
Share what you want to change and what you are weighing.
- Step 2
Review your current loan
Look at your balance, term, and costs side by side.
- Step 3
Apply and document
Complete the secure online application when you are ready.
- Step 4
Review and close
Charles keeps you updated through underwriting to closing.
Common questions.
A rate-and-term refinance changes the interest rate, the loan term, or both, without taking cash from your home. A cash-out refinance replaces your loan with a larger one and pays you the difference in cash, using some of your home equity.
Compare upfront costs, the monthly payment, the loan term and total interest. If there are positive monthly savings, dividing upfront costs by those savings gives a simple cash-flow break-even estimate, not a complete comparison. Whether it is worth it also depends on how long you expect to keep the loan.
Not necessarily. Savings depend on your current loan, the new loan, your costs and how long you keep it. Extending the term can lower a payment while increasing the total interest paid over time.
Refinances generally involve closing costs such as lender fees, an appraisal and title charges. Charles can explain the costs that apply to your situation before you decide.
A cash-out refinance can turn equity into cash, but it increases your loan balance and secures more borrowing against your home. It is worth weighing carefully against other options.
No. Talking with Charles is a way to understand your options. A loan is subject to credit approval and underwriting guidelines.
Talk it through with Charles.
No pressure and no commitment. Any loan is subject to credit approval and underwriting guidelines.
Keep exploring
Explore other loan options.
- First-Time HomebuyersThe plain-language starting point for your first purchase.
- FHA LoansGovernment-insured, with flexible credit and down payment guidelines.
- VA LoansAn earned benefit for eligible veterans, service members and some surviving spouses.
- Conventional LoansNot government-backed, with mortgage insurance that can come off.
- Jumbo LoansFor loan amounts above conforming limits, with stricter guidelines.
- Mortgage CalculatorTest your own numbers before you talk.