Rate-and-term refinance
Replace your current loan with one at a lower rate, which can lower your monthly payment and the interest you pay over the life of the loan.
Home / Refinance
Refinance Guide
Make the home you have work harder for you.
Lower your payment, pay your home off sooner, or put your equity to work. We’ll tell you honestly whether a refinance makes sense, and walk you through every step if it does.
Why Refinance
Six reasons homeowners refinance.
Shorten your term
Move from a 30-year loan to a 20- or 15-year loan. The payment may go up, but you can save a great deal of interest and own your home free and clear years earlier.
Cash-out refinance
Turn part of your home’s equity into cash for a remodel, college costs, a second property, or other goals.
Debt consolidation
Pay off higher-interest credit cards or loans with one mortgage payment. We’ll compare the total cost so you can see whether it truly saves you money.
Remove PMI or MIP
If your home has gained value, refinancing an FHA loan or a loan with mortgage insurance into a conventional loan may eliminate that monthly cost.
Adjustable to fixed
Trade an adjustable-rate mortgage for a fixed rate so your principal and interest payment stays the same for the life of the loan.
Veterans with a VA loan may qualify for a VA Interest Rate Reduction Refinance Loan, and FHA borrowers may qualify for an FHA Streamline. Both often need less paperwork. See refinance loan programs →
Does It Make Sense?
Find your break-even point.
A refinance has closing costs, so it pays off only if you keep the new loan long enough for your monthly savings to cover them. Enter your numbers to see how many months that takes.
Not sure of your new payment? Call Taum for a free quote and we’ll run the real numbers for you.
months to break evenNo savings at these numbers
Monthly savings
Savings per year
For planning only. Not a loan offer or rate quote. Compare principal and interest only; taxes and insurance usually stay the same.
The Refinance Process
Step by step, from first call to funding.
Free refinance review You & Marketline
Tell us your goal. We’ll look at your current loan, your rate and your equity, and tell you honestly whether refinancing makes sense right now.
Apply and lock your rate You & Marketline
You complete an application online and we review your credit. When you’re ready, we lock your rate.
Sign and send documents You
You sign the loan application and send your supporting documents, plus your current mortgage statement and homeowners insurance information.
We order everything else Marketline
The appraisal, preliminary title, a payoff statement from your current lender, verification of employment, and a subordination if a second loan or HELOC is staying in place.
Submit to underwriting Marketline
We review your complete file and send it to the lender’s underwriter.
Clear the conditions You
The underwriter usually issues a conditional approval. Send us anything they ask for right away; quick answers save days.
Final approval and Closing Disclosure Marketline
Once your loan is approved, we email your Closing Disclosure to e-sign. You must receive it at least 3 business days before you sign.
Sign your loan documents You & Title
The title company schedules your signing. Many refinances can be signed at home with a mobile notary.
Three-day right to cancel You
For most refinances of your primary home, federal law gives you three business days after signing to change your mind. Your loan funds after that period ends.
Funding and payoff Lender & Title
The new loan funds, your old loan is paid off, and any cash-out is sent to you. Watch for a refund of the escrow balance from your old lender.
Your first new payment You
Your first payment on the new loan is usually due about 30 to 60 days after funding. We’ll tell you the exact date.
Three Forms to Know
Your Loan Estimate, Closing Disclosure and right to cancel.
Loan Estimate
A standard three-page form you’ll receive within 3 business days of a complete application, showing your estimated rate, payment and closing costs. Use it to compare offers side by side.
Closing Disclosure
Your final loan terms and costs, received at least 3 business days before you sign. Compare it with your Loan Estimate and ask us about anything that changed.
Notice of Right to Cancel
For most primary-home refinances, this form explains your right to cancel within three business days and how to do it.
What Lenders Look At
Equity, credit and the full picture.
Your loan-to-value
Your equity is your home’s value minus what you owe. More equity usually means better pricing, and 20% or more lets you avoid mortgage insurance on a conventional loan.
Your ability to repay
Lenders review your credit history, income and other monthly debts, just as they did when you bought the home. A recent rise in your score can mean a better rate.
Your home’s value today
An appraiser estimates today’s value from recent nearby sales. Some loans qualify for an appraisal waiver, which saves time and cost. We’ll check if yours does.
Signing Day Checklist
What to have ready.
Your title company will confirm the details. Personal checks are normally not accepted for funds due at closing.
- Government-issued photo ID for everyone signing
- A cashier’s check or wire, if any funds are due at closing
- Your homeowners insurance agent’s contact information
- Keep making your current mortgage payment until we tell you it has been paid off
- Wiring? Call your title officer at a number you already know to confirm the instructions. Inquire before you wire →
Step one is a free refinance review.
No cost and no pressure. If refinancing doesn’t make sense for you right now, we’ll tell you.