“I already own, and I want a lower payment.”
Can I lower my mortgage payment?
Maybe. A refinance replaces your loan with a new one. It may lower your payment, shorten your loan or drop mortgage insurance. It also has closing costs, so the savings have to beat the cost. A loan officer runs both numbers and tells you if it isn’t worth it.
Quick answers
Paying mortgage insurance?
If your home’s value went up, you may be able to drop it.
Rates lower than when you bought?
A refinance may lower your payment. We check if the savings beat the cost.
What you'll need
- Your current mortgage statement
- Pay stubs or other proof of income
- Your homeowners insurance details
How does it go, start to finish?
How do I know if it’s worth it?
Add up the closing costs. Then divide by what you’d save each month. That’s how many months it takes to break even. If you’ll keep the home longer than that, it may be worth it.
Your loan officer runs the numbers with you, and tells you if it doesn’t add up.
Can a refinance drop my mortgage insurance?
Often, yes, if your home’s value has gone up. A new appraisal shows how much equity you have.
If you have an FHA loan, moving to a conventional loan can drop the FHA mortgage insurance once you have enough equity.
What does a refinance cost?
Closing costs, much like when you bought. Your Loan Estimate lists every one within three business days of applying.
Some loans let you roll the costs into the new loan. You need less cash that way, but you pay interest on the costs too.
Can I take cash out when I refinance?
Yes. That’s a cash-out refinance, and it has its own page. A refinance that only changes your rate or term is usually priced better than one that takes cash out.
Will a refinance restart my loan?
A new loan starts a new term. If you’ve paid on your loan for years, ask about a shorter term, so you don’t add years of payments.
Questions people ask
When is a refinance worth it?
When the monthly savings pay back the closing costs before you expect to sell or refinance again.
Can I refinance if my home’s value dropped?
Maybe. It depends on how much equity is left. Your loan officer can tell you after a look at your loan and your home’s value.
Can I change my mind after I sign?
On a refinance of the home you live in, usually yes. You get three business days to cancel before the new loan pays off the old one.
Does refinancing hurt my credit?
The credit check can lower your score a little for a short time. Your loan officer tells you before it happens.
How long does a refinance take?
Often about a month from application to closing. Once the appraisal is ordered, your loan officer gives you the dates.
Do I need an appraisal?
Usually, yes. Some loans can skip it, and your loan officer tells you if yours can.
Does Home First Financial offer refinancing in California?
Yes. Home First Financial arranges refinance loans across California, and a loan officer tells you if a refinance isn’t worth it. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
Subject to qualification. Closing costs apply. A refinance may increase total interest paid over the life of the loan. Not a commitment to lend.
Also called: a rate-and-term refinance.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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