Refinance Your Home Loan

Overview

What Is a Mortgage Refinance?

A mortgage refinance replaces your current home loan with a new one—typically to secure a lower interest rate, reduce your monthly payment, shorten your loan term, or access your home equity through a cash-out refinance. Homeowners refinance to improve long-term financial stability, eliminate PMI, or restructure their mortgage for better affordability.

Benefits

Why Homeowners Choose to Refinance

Lower Your Monthly Payment

Reduce your mortgage payment by securing a lower interest rate or extending your loan term. Lower payments can improve your monthly cash flow.

Pay Off Your Home Faster

Refinancing to a shorter term—such as a 15-year mortgage—can significantly reduce the total interest paid over the life of your loan.

Cash-Out Home Equity

A cash-out refinance allows you to use your home’s equity to fund renovations, consolidate debt, cover education costs, or handle major expenses.

Process

How a Mortgage Refinance Works

1

Review Your Current Loan

We evaluate your current interest rate, remaining balance, loan term, and monthly payment to identify potential savings and determine whether refinancing will benefit your financial goals.

2

Choose Your Refinance Option

Based on your goals, you may select a rate-and-term refinance, cash-out refinance, or streamline refinance (for FHA or VA loans) to improve your rate, payment, or access to equity.

3

Apply & Lock Your Interest Rate

Once the application is submitted, your interest rate is locked in to protect you from market changes during the underwriting and approval process.

4

Appraisal, Underwriting & Closing

A home appraisal may be required depending on your loan type. Underwriting reviews your financial documents, and once approved, you close on the new loan—officially replacing your old mortgage.

Guidelines

Eligibility Requirements for Refinancing

  • Stable employment and proof of reliable income
  • Good credit history and positive payment track record
  • Sufficient home equity (requirements vary by program)
  • Acceptable debt-to-income (DTI) ratio
  • Loan amount and terms meet lender guidelines
  • No recent late mortgage payments
Options

Types of Mortgage Refinance Options

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Rate-and-Term Refinance

  • Adjusts your interest rate and/or loan term
  • Can reduce your monthly mortgage payment
  • No cash is taken out at closing
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Cash-Out Refinance

  • Borrow more than your current mortgage balance
  • Receive the difference as cash at closing
  • Ideal for renovations, debt consolidation, or major expenses
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Streamline Refinance (FHA / VA)

  • Simplified documentation and faster processing
  • Often does not require a full appraisal
  • Designed to lower your rate or monthly payment quickly
Compare

Refinance vs. Cash-Out Refinance

See how a traditional refinance compares to a cash-out refinance so you can choose the option that best fits your goals.

Primary Goal
Refinance Lower interest rate or monthly payment.
Cash-Out Refinance Access cash from the equity in your home.
Loan Amount
Refinance Usually similar to your current payoff amount.
Cash-Out Refinance New loan amount is higher so you can receive cash back.
Cash at Closing
Refinance No cash back; you’re restructuring the loan only.
Cash-Out Refinance Yes, you receive funds from your home equity at closing.
Monthly Payment Impact
Refinance Often decreases when you secure a lower rate or longer term.
Cash-Out Refinance May increase if the new loan amount or term is higher.
Best For
Refinance Lowering monthly payments or total interest over time.
Cash-Out Refinance Renovations, debt consolidation, tuition, or large purchases.

Ready to Run The Numbers?

See how refinancing with The Huntress Home Loan Pro could impact your payment, payoff date, and total interest.

Start My Refinance Review