rate and term refinance
Refinancing could help you reduce your monthly payment, lower your interest rate, remove mortgage insurance, consolidate debt, or pay off your mortgage faster with a loan that fits your budget.
100% secured. No impact to your credit scores.
Tap into the equity you’ve built to get cash when you need it.
Pay off high interest revolving debt and simplify your finances.
Renovate, upgrade and increase the value of your home.
Keep it simple with one loan, one rate and one payment.
Refinancing can be a great financial tool but it’s not always the right move. Here’s what to consider.
Your break-even point is how long it takes your monthly savings to recoup your refinance closing costs.
But, if you are looking for a cash-out refinance, this number may not make too much sense.
how does it work?
There are different ways how a refinance can help you lower your monthly payments and give you more breathing room in your budget.
A lower rate reduces the amount of interest each month.
By increasing the amount of years of mortgage, your payment can be lower.
If you have enough equity in your home, you may be able to eliminate PMI.
Pay off your credit cards or other high-interest unsecured debt with a cash-out refinance.
which one is the better refinance for you?
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Strategy
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What does it do?
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Best For
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Lower rate refinance
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Reduces your interest rate and payment
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Homeowners with higher interest rates
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Shorter Term Refinance
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Reduces your term to pay off your mortgage faster
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Homeowners who want to be mortgage free
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Remove PMI/MIP
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Gets rid of your mortgage insurance
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Those who have an FHA loan or conventional with PMI but have sufficient equity
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Debt consolidation Refinance
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Combines debt in one affordable payment
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Homeowners with sufficient equity and high interest, high payment unsecured debt
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VA IRRRL
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Reduces the rate and payment on VA Loans
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Veterans with a VA Loan who have higher rates than what's currently offered
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FHA Streamline
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Reduces the rate and payment on FHA loans
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Homeowners who have an FHA loan and have rates higher than what's currently offered
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Switch loan program
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May offer better rates or payments
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Borrowers who qualify for better loans or switch from FHA to conventional
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Get full clarity on what refinancing numbers will look like for your own situation. With Andes Mortgage's refinance calculator, you'll be able to compare rates, new payments, closing costs, monthly savings and break-even point.
A flexible line of credit that lets you borrow against home equity as needed, usually without replacing your current first mortgage
A lump-sum second mortgage with a fixed payment, which may be useful if you want predictable payments without refinancing your first mortgage.
A loan recast may lower your monthly payment after making a large principal payment, without replacing your current mortgage or changing your interest rate.
If you have a conventional loan and enough equity, you may be able to request PMI removal from your current lender without doing a full refinance.
The Rate and Term refinance is not just to help you lower the monthly payments of your home. You may also explore getting a lower term such as a 15 or 20 year mortgage and pay off your loan faster.
Many of our clients have successfully been able to lower their rates, eliminate PMI, access equity and obtain a lower term, all in one refinance!
Not sure what’s the best option for you? Take our 30 second quiz & find out.👇
Mortgage refinancing involves taking out a new loan to replace your existing mortgage. The goal is to secure a loan with better terms, whether that’s a lower interest rate, a different loan duration, or other benefits.
There are several refinancing options to consider, with the two most common being:
The biggest mistake homeowners make is by not paying attention to their break-even timeline. In other words, make sure you determine how long it will take to recoup the costs of refinancing through lower monthly payments. If you plan to sell your home soon, refinancing might not be worth it.
Another big mistake most people make is by heavily buying down points for a lower rate. Most homeowners only look at the lowest rate but fail to consider that the lowest rates may have tens of thousands of discount point buydown that may take several years to break even.
Refinancing won’t always be the right choice for everyone, but there are a few key benefits to consider if this is something that’s been on your mind.
The most obvious benefit of refinancing your mortgage is to tap into lower monthly payments. By securing a lower interest rate or securing your loan term, you can decrease your monthly payment amount, freeing up cash for other needs.
Consider what refinancing might do for you now, in the short term, as well as over the entire life of the loan. It might not seem like much, but even half a percentage point makes a huge difference over the course of 30 years.
Over time, a lower interest rate could potentially save you thousands of dollars in interest payments, thereby reducing the overall cost of your home.
If you’re juggling multiple other expenses, refinancing can help by allowing you to consolidate high-interest debt. This will make it easier for you to manage and potentially lower your overall interest costs across the board.
Get an idea of what rates look like for a cash out refinance today.
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
Check out today’s average interest rates for refinancing.
Tap into your home equity without refinancing.
How does a cash-out refinance work for accessing equity of your home.
Calculate your house payment by refinancing your home.
Yes. A refinance may lower your payment if you qualify for a lower interest rate, extend the loan term, remove mortgage insurance, or restructure the loan in a way that reduces your monthly obligation. The best way to know is to compare your current loan with a new refinance estimate.
There is no single rule that works for every homeowner. The decision depends on your loan balance, current rate, new rate, closing costs, how long you plan to keep the home, and your monthly savings. The break-even point is usually more important than the rate difference alone.
The break-even point is the amount of time it takes for your monthly savings to recover your refinance closing costs. For example, if your refinance costs $4,500 and saves you $300 per month, your break-even point is about 15 months.
Possibly. If your home value has increased or your loan balance has dropped enough, refinancing into a new loan may help remove PMI or mortgage insurance. This depends on your loan type, equity position, credit profile, and available refinance options.
Sometimes, but not always. If your current rate is very low, a refinance may not make sense just to lower your payment. However, it may still be worth comparing options if you need to remove mortgage insurance, consolidate debt, access equity, or change loan terms.
Yes, if you have enough equity and qualify for the new loan. Some homeowners refinance to combine higher-interest debts like credit cards, personal loans, or other obligations into one mortgage payment. This may improve monthly cash flow, but it can also increase your mortgage balance and total interest over time.
Yes. Extending the repayment term can lower the monthly payment because the balance is spread over more years. The tradeoff is that you may pay more interest over the life of the loan, so it should be compared carefully before moving forward.
Credit score requirements depend on the refinance program, lender, loan type, property type, equity, and overall risk profile. Conventional, FHA, VA, jumbo, and Non-QM refinance programs can all have different requirements.
The equity needed depends on the loan program and refinance purpose. A simple rate-and-term refinance may require less equity than a cash-out refinance. If your goal is to remove mortgage insurance or consolidate debt, equity becomes especially important.
They can be if the savings, debt relief, or loan improvement outweigh the cost. Instead of only focusing on the rate, compare the closing costs, monthly savings, break-even point, and how long you expect to keep the home.
It depends on your goal. A refinance replaces your current mortgage with a new one, while a HELOC is usually a separate line of credit tied to your home equity. If you already have a very low first mortgage rate, a HELOC may be worth comparing before refinancing the entire loan.
Yes. Self-employed homeowners may qualify through traditional documentation or alternative programs such as bank statement loans, profit-and-loss options, asset-based programs, or Non-QM refinance solutions, depending on the situation.
Yes. FHA and VA borrowers may have access to streamlined refinance options, depending on eligibility. FHA Streamline and VA IRRRL programs are designed to simplify certain refinances and may help lower payments when the numbers make sense.
Yes. A higher home value may improve your equity position, which can help with removing mortgage insurance, qualifying for better terms, accessing cash out, or restructuring the loan. An updated property value can make a big difference.
The best refinance option depends on your current loan, interest rate, equity, credit, debts, income, monthly payment goal, and how long you plan to keep the home. Andes Mortgage can compare multiple lender options and help you decide if refinancing is actually worth it.
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