Refinance Your Mortgage

Run your own numbers. The calculator uses only what you type in, and the break-even point is the month your savings have covered the costs.

On this page

1. Will a refinance pay for itself?
2. What does refinancing a mortgage mean?
3. When does refinancing make sense?
4. What is the difference between a rate-and-term and a cash-out refinance?
5. What are streamline refinances?
6. What does a refinance cost?
7. How do you start a refinance with Forward Loans?
8. Refinance FAQs

A refinance pays off your existing mortgage with a new loan on the same home. The house does not change hands; the debt does. The new loan can carry a different rate, a different term, a different loan type, or a larger balance that puts cash in your pocket from the equity you have built.

Because Forward Loans is a brokerage, the new loan does not have to come from your current servicer. We shop it across our lender network, or fund it in house as a non-delegated correspondent lender, whichever works out better for you.

The honest test is simple: the new loan has to leave you better off after its costs. That usually looks like one of four situations. Rates have moved below what you locked when you bought. Your credit or equity has improved enough to earn better pricing than you qualified for then. You want out of an adjustable rate before it moves. Or you need cash for a renovation, debt consolidation, or a major expense, and your equity is the cheapest place to get it.

It also has math working against it sometimes. If you plan to sell soon, the costs may never earn themselves back. We will tell you when that is the case.

A rate-and-term refinance changes the rate, the term, or both, and the new balance stays close to what you owe today. It is the tool for lowering a payment or dropping an adjustable rate.

A cash-out refinance replaces your loan with a larger one and hands you the difference. It requires more equity and full underwriting, and pricing runs a little higher because the loan is bigger. If you want cash but your current first mortgage is worth keeping, a home equity loan or HELOC can be the better tool. We run the options side by side.

Government loan programs offer shortened refinances for borrowers who already hold that loan type. The VA IRRRL refinances an existing VA loan, in most cases with no appraisal and no new income documentation. The FHA Streamline does the same for existing FHA loans. Both trade paperwork for one condition: the new loan has to produce a clear benefit, such as a lower rate or a fixed payment.

A refinance carries closing costs like a purchase does: lender fees, title, escrow, and recording. They can usually be paid in cash, rolled into the new balance, or offset through pricing. Each choice changes the math on how long the refinance takes to pay for itself, and that break-even number is the one worth knowing before you sign anything. We put it in front of you before you commit.

Use the quote form on this page or call the office at (602) 730-2270. We look at your current loan, confirm the goal, and price the refinance across our lender network. Figures quoted before underwriting are estimates, subject to full underwriting.