Mortgage refinance

Refinancing is worth doing, or it is not. We will tell you which.

A refinance only makes sense if the saving outruns the cost before you sell or move again. That is arithmetic, not a sales conversation, and you should see it done.

See if I qualifyTalk to Diego
Break-evenThe only number that decides it
Rate & termLower the payment, or shorten the loan
Cash outUse equity without selling

Mortgage refinance

The three reasons to refinance

Rate and term: you replace the loan with a cheaper one, or a shorter one. Shortening is the underrated move, because going from thirty years to fifteen usually costs less per month than people expect and saves an enormous amount of interest.

Cash out: you borrow against equity you have already built, typically for renovation, to clear higher interest debt, or for a deposit on something else. The rate is lower than almost any other borrowing, which is exactly why it needs to be treated seriously.

Getting rid of mortgage insurance: if you started on FHA and now have real equity, moving to a conventional loan can remove a premium that FHA keeps charging for the life of the loan.

  • Your rate is meaningfully above what is available now
  • You want to be mortgage free sooner rather than cheaper monthly
  • You are paying FHA mortgage insurance you have outgrown
  • You have equity and a use for it that is worth the interest
  • You are consolidating debt that costs far more than a mortgage does

What is assessed

What a lender is actually looking at.

None of this is a secret, and knowing it early is the difference between a smooth file and a scramble two weeks before closing.

The break-even pointClosing costs divided by the monthly saving gives you the number of months before the refinance pays for itself. If you plan to move before then, do not do it.
EquityMost rate and term refinances want at least a little equity. Cash out generally stops at 80% of the value, which caps what you can take.
Credit and incomeAssessed the same way as a purchase. A refinance is a new loan, not an adjustment to an old one.
The term you restartRefinancing a loan you are eight years into back to thirty years lowers the payment and can still cost you more overall. We will show you both.

Three minutes

Find out where you stand on this program.

The qualifier asks five questions and comes back with the programs you fit and an estimated monthly payment. It does not run a credit check to do it.

  • No credit check to get an answer
  • An estimated payment before anyone calls you
  • Routed to a named loan officer, not a queue

See what you qualify for

Free

Questions

The ones people actually ask.

How much does a refinance cost?
Typically 2% to 5% of the loan amount in closing costs, sometimes rolled into the new loan. That is the number the monthly saving has to beat, and it is why we start with the break-even rather than the rate.
Can I refinance if my credit dropped since I bought?
Often yes, and FHA has a streamline route that is lighter on documentation. Whether it is worth it is the more useful question, and depends on the rate you would move to.
Should I take cash out to pay off credit cards?
Sometimes. Mortgage interest is far cheaper than card interest, so the arithmetic can be very good. The risk is real though: you are moving unsecured debt onto your house. We will not pretend that is free.
What is an appraisal waiver?
Some refinances qualify to skip the appraisal, which saves a few hundred dollars and a couple of weeks. It depends on the property, the loan and the automated valuation, and we will know early.

Who handles mortgage refinance

Diego Esquivel

Mortgage Broker · NMLS #1592085

A broker who is also a developer and a construction company founder. Diego can tell you what a property is really worth before a lender does.

Read the full profile (714) 469-9577

Other programs

Compare it against the alternatives.

Most borrowers fit more than one program. Which one is best depends on how long you will hold the loan, not only on what you qualify for today.

Buying a homePurchase loans RefinancingLower it or shorten it ConventionalFrom 3% down FHA3.5% down, 580+ VANo down payment USDAZero down, eligible areas JumboAbove the limit Bank statementSelf employed InvestorDSCR and short sales CommercialFive units and up

Get a straight answer before you commit to anything.

Three minutes, no credit check, no obligation, and a named loan officer on the other end of it.

See what I qualify for Or call (714) 469-9577

August Mortgage Group, NMLS #2642110. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval and property appraisal.