Start with break-even
Divide your total closing costs by your monthly savings. The result is the number of months until the refinance pays for itself. If you plan to move before then, it usually is not worth it.
Our refinance calculator runs this automatically, and a loan officer can confirm it with real numbers.
Dropping mortgage insurance
If you bought with an FHA loan and your home has appreciated, refinancing to conventional can eliminate the mortgage insurance premium even when the interest rate is similar. For many Downriver owners this is the largest single saving available.
Shortening the term
Moving from 30 years to 20 or 15 raises the monthly payment but can cut total interest substantially. This suits owners with stable income who are ahead on other goals.
When not to refinance
If you are a few years from paying off the loan, if you plan to sell soon, or if the savings are small relative to the costs, staying put is usually the better answer. We will tell you when that is the case.
This article is general educational information, not financial, legal or tax advice, and it is not a commitment to lend. Program guidelines and availability change. Talk to a licensed loan officer about your specific situation.