General Refinance Considerations

Objective for Refinancing
  • Lower monthly payments
  • Shorten loan term
  • Switch from adjustable-rate to fixed-rate (or vice versa)
  • Cash-out home equity for expenses or investments
Current Loan Details
  • Remaining loan balance
  • Current interest rate
  • Remaining term
  • Monthly payment
  • Prepayment penalties (if any)
Market Conditions
  • Current interest rates
  • Economic forecasts
  • Availability of special government programs or incentives
Eligibility Criteria
  • Credit score requirements
  • Debt-to-income ratio
  • Loan-to-value ratio

Decision Factors

Break-even point (when the savings outweigh the costs)

New monthly payment amount

Total cost of new loan vs. old loan

Impacts on credit score

Comparison Shopping

  • Research multiple lenders
  • Get quotes and loan estimates
  • Compare interest rates
  • Consider variable vs fixed rates
money for mortgage
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Costs and Fees

  • Application fees
  • Origination fees
  • Appraisal fees
  • Closing costs
  • Private Mortgage Insurance (PMI) for home loans, if applicable


  • Proof of income (e.g., pay stubs, tax returns)
  • Credit history report
  • Property appraisal for home loans
  • Current loan statements
  • Asset verification (e.g., bank statements, investment accounts)

Post-Refinancing Actions

  • Keep records of all refinancing documents
  • Update auto-pay settings, if applicable
  • Monitor credit report to ensure old loan is closed and new loan is accurately reported
  • Reassess budget based on new monthly payments

Always consult with your loan officer to make sure you’re making the best decision for your specific circumstances.