Line R
Refinance
A return journey rather than a new one. Same house, new terms, and a fresh set of closing costs each time you take it.
- Two shapes
- Rate and term, or cash out
- Replaces
- Your existing first mortgage
- Costs
- Closing costs, every time
What the program actually says
A refinance replaces the loan you have with a new one. Rate and term keeps the balance roughly where it is and changes the terms. Cash out increases the balance and pays you the difference.
It is a full new loan, so it carries full closing costs. Rolling those into the balance does not make them free, it moves them.
Cash out refinances are underwritten more tightly than rate and term, and the maximum loan to value is usually lower.
FHA and VA both have streamlined refinance routes with reduced documentation, for borrowers already on those programs. They have their own eligibility conditions including a net tangible benefit test and a seasoning requirement.
On a refinance secured by your principal residence you generally have a three business day right of rescission under the Truth in Lending Act, so funds do not disburse on the day you sign.
See what the payment does
Illustrative figures only. What that means.
Principal and interest, worked from numbers you choose. It carries no program specific mortgage insurance, fee or premium, because those depend on your file rather than on arithmetic.
10.0% of the price
A worked number, not a quote or an offer.
Principal and interest, monthly
$0
Property tax, homeowners insurance, any mortgage insurance and any HOA dues sit on top of this figure. They vary far too much by address for a national number to mean anything.
- Loan amount
- $0
- Loan to value
- 0%
- Total interest over the term
- $0
- Total of payments
- $0
Below 20% down, a conventional loan normally carries private mortgage insurance until you reach 20% equity. It is not in the figure above.