Mortgage Refinance FAQ

What are refinance mortgage rates today?

Rates change frequently due to market conditions. Compare same-day quotes from multiple lenders and use our calculator to see the impact on your payment and break-even month.

Is it worth refinancing right now?

It’s usually worth it if you can lower your total interest or monthly payment and reach a reasonable break-even (months to recover closing costs). Run the numbers in the calculator before applying.

How much does it cost to refinance a mortgage?

Typical closing costs are ~2–5% of the loan amount (appraisal, title, lender fees). Ask about lender credits vs. paying discount points, then compare the all-in cost for your time horizon.

What credit score do I need to refinance?

Many lenders look for 620+ for conventional refis; better pricing usually starts at 740+. FHA/VA options may allow lower scores. Improving credit can meaningfully reduce your rate.

How long does a refinance take?

Commonly 25–45 days depending on appraisal, documentation, and lender capacity. Streamlined programs (FHA/VA) can be faster if you qualify.

What’s the difference between rate-and-term and cash-out refinance?

Rate-and-term changes your rate/term without taking cash. Cash-out increases your loan to access equity. Cash-out can affect pricing and LTV—compare against a HELOC before deciding.

Should I choose a 15-year or 30-year term?

15-year loans often have lower rates and save interest but raise monthly payments. Pick the term that fits your budget and payoff goals; use the calculator to compare totals.

Can I refinance with bad credit?

Possibly. Expect higher rates or additional requirements. Consider improving credit first (pay down balances, fix errors) to qualify for better pricing.

Do I need an appraisal?

Many refis do, but appraisal waivers are possible depending on LTV, property data, and AUS findings. Ask your lender if a waiver is likely for your scenario.

How does debt-to-income (DTI) affect approval?

Lower DTI generally improves approval odds and pricing. Lenders typically prefer DTI below ~45%, though exact limits vary by program.

What are discount points?

Upfront fees you pay to lower your rate (one point = 1% of the loan amount). Model “with points” vs “no points” and choose the better all-in outcome for your timeframe.

When is the best time to lock a rate?

After you’ve compared quotes and chosen a lender. Locks are usually 30–60 days; ask about float-down options if rates drop before closing.

Can I refinance to remove PMI?

Yes—if your new LTV meets the threshold (often ≤80% for conventional). A lower rate plus removing PMI can create substantial savings.

Will refinancing reset my loan term?

Only if you choose a new full term (e.g., another 30 years). You can choose shorter or custom terms to avoid extending payoff—compare total interest in the calculator.

What documents will lenders ask for?

Typically recent pay stubs, W-2s/1099s, tax returns (self-employed), bank statements, mortgage statements, and homeowners insurance details.

Next: Read Refinance Mortgage Rates Today or How Refinance Rates Impact Savings. Look up terms in the Glossary.