Lower your rate
If rates have fallen since you closed, or your credit has improved, a lower rate can reduce what you pay over the life of the loan.
Refinance Your Home Loan
Refinancing replaces your current mortgage with a new one on better terms, a lower rate, a smaller payment, a shorter term, or cash from your equity. As an independent mortgage broker, Howard Funding shops 40+ lenders to find the refinance that actually saves you money, and we'll tell you honestly if now isn't the right time.
Why Refinance
Six good reasons homeowners refinance
The right reason is the one that fits your goals. Here are the most common, and any combination of them can make a refinance worthwhile.
Lower your payment
A better rate or a re-spread term can shrink your monthly payment and free up room in your budget.
Shorten your term
Move from a 30-year to a 20- or 15-year loan to own your home sooner and save significant interest.
Remove PMI or MIP
Enough equity may let you refinance out of FHA mortgage insurance or drop conventional PMI, lowering your payment for good.
Take cash out
Tap your equity for a renovation, tuition, or a big expense with a cash-out refinance, often at a lower rate than other borrowing.
Consolidate debt
Roll higher-interest credit cards or loans into your mortgage to simplify payments and potentially lower your total interest.
Is Now A Good Time?
The honest answer: it depends, and we'll tell you
There's no universal "right time" to refinance. The smart question isn't "are rates low?", it's "does this specific refinance save me more than it costs, given how long I'll keep the loan?" A refinance that looks great on a rate alone can be a bad deal if you sell in two years, and a modest rate drop can be a great deal if you stay put and the costs are low.
We look at four things together: how your new rate compares to your current one, the closing costs involved, how long you plan to stay in the home, and what you're trying to accomplish, a lower payment, a faster payoff, or cash in hand. When the numbers line up, we move. When they don't, we'll tell you to wait. No pressure, no games.
Because we're brokers, we can also watch the market for you. If rates move in your favor later, we'll reach out.
Types Of Refinance
Two paths, different goals
Almost every refinance is one of these two. The right one depends on whether you want to improve your loan or unlock your equity.
Rate-and-term refinance
Changes your interest rate, your term, or both, without increasing your loan balance. This is the go-to when your goal is a lower rate, a smaller payment, a shorter payoff, or getting rid of mortgage insurance.
- Lower your monthly payment
- Shorten your term to build equity faster
- Switch from an ARM to a fixed rate
- Drop FHA mortgage insurance or PMI
Cash-out refinance
Replaces your mortgage with a larger loan and returns the difference to you in cash, drawn from the equity you've built. A flexible way to fund big goals, often at a lower rate than credit cards or personal loans.
- Fund a renovation or home improvement
- Consolidate higher-interest debt
- Cover tuition or a major expense
- Keep cash reserves for flexibility
How Refinancing Works
From application to closing, step by step
A refinance follows a similar path to your original mortgage, and often moves faster, since you already own the home. Here's what to expect.
Set your goal
Tell us what you want, a lower payment, a shorter term, or cash out. We review your current loan and confirm a refinance can get you there.
We shop your loan
Howard Funding puts your file in front of 40+ lenders and brings back the best combination of rate and closing costs for your goal.
Appraisal & underwriting
We verify your income and equity and order an appraisal if needed, then manage underwriting to keep things on schedule.
Close & start saving
You sign, your new loan pays off the old one, and your improved payment or cash-out proceeds kick in.
The Math That Matters
Understanding your break-even point
Every refinance has closing costs, the appraisal, title, and lender fees, similar to your original mortgage. The way to know if a refinance is worth it is the break-even point: divide your total costs by your monthly savings, and you get the number of months it takes to come out ahead. If you'll keep the loan well past that point, the refinance pays off. If you might move or refinance again sooner, it may not.
For example, if a refinance costs you money to close but lowers your payment each month, the break-even is simply how many months of those savings it takes to recover the cost. We run this calculation with your real numbers, and we look at whether costs can be reduced through the rate or rolled into the loan, so you make the decision with clear eyes.
Our promise on costs: before you commit to anything, you'll see every fee itemized and your break-even point in plain numbers. If the refinance doesn't clearly benefit you, we'll say so.
This is not a commitment to lend. Rates and terms are subject to change and vary by borrower qualification and property. Not all applicants will qualify. This is not an advertisement for a specific interest rate. Equal Housing Lender.
Common Questions
Refinance questions, answered
When does refinancing make sense?
Refinancing makes sense when the benefit outweighs the cost. That usually means you can meaningfully lower your rate or payment, shorten your term, drop mortgage insurance, or put your equity to work, and you'll keep the loan long enough to recoup the closing costs. We calculate your break-even point before you commit, so the decision is based on your real numbers, not a guess.
What is the difference between rate-and-term and cash-out refinancing?
A rate-and-term refinance changes your interest rate, your loan term, or both, without increasing your loan balance, the goal is a lower rate, lower payment, or faster payoff. A cash-out refinance replaces your loan with a larger one and gives you the difference in cash, which you can use for renovations, debt consolidation, or other needs. Cash-out uses your built-up equity.
How much does it cost to refinance?
A refinance has closing costs similar to your original mortgage, items like the appraisal, title, and lender fees. Depending on the loan, some of these can be rolled into the balance or offset by the rate. What matters is your break-even point: how many months of savings it takes to cover the cost. We'll lay every cost out clearly so you can see whether it's worth it.
Will refinancing reset my loan back to 30 years?
Only if you want it to. You can refinance into a new 30-year loan for the lowest payment, or choose a shorter term, like 20 or 15 years, to stay on track or pay off faster. Some homeowners refinance to a lower rate while keeping a similar payoff date, which can save a lot of interest. We'll show you the options side by side.
Can I refinance to remove mortgage insurance?
Often, yes. If your home has gained enough value or you've paid down the balance, refinancing from an FHA loan into a conventional loan can eliminate FHA mortgage insurance, and reaching 20% equity can remove PMI. Whether it's worth it depends on today's rates and your costs, which is exactly what we help you weigh.
Ready when you are
See if refinancing makes sense, free.
Let Chance run your break-even and shop 40+ lenders. If a refinance saves you money, we'll find it. If it doesn't, we'll tell you straight.