Refinance Your Mortgage

Refinance closing costs typically range from 2–5% of your new loan amount. This calculator estimates 2% as a baseline, but your actual total may be slightly higher. Here's why:

• Payoff amount: Your current lender typically rolls roughly one extra payment into the payoff amount (accrued interest through the payoff date), so the amount you're paying off is slightly more than your principal balance
• Loan type: VA loans often have lower closing costs than FHA or conventional
• Appraisal: Required for most conventional and FHA loans ($400–$600)
• Title insurance & search: $200–$500
• Origination fee: 0.5–1.5% of loan amount
• Underwriting & processing: $300–$800
• Wire transfer & recording fees: $100–$300

Escrow refund: After closing, you can expect an escrow and per-diem interest refund check from your previous lender within 20–30 days. This often amounts to several hundred to a few thousand dollars depending on your escrow balance. Ask us for a detailed Loan Estimate before you start — we'll walk through every line item.

Rate/term refinance lets you refinance only your existing balance at a new rate and term. This is the simplest refi option and allows higher LTV (loan-to-value) ratios:

• Conventional: up to 97% LTV (refinance up to 97% of your home's value)
• FHA: up to 97.75% LTV
• VA: no LTV limit for rate/term refis (streamline options available)

Cashout refinance lets you borrow more than your current balance and receive the difference in cash. Cashout refis typically cap out at:

• Conventional: 80% LTV
• FHA: 80% LTV
• VA: 100% LTV (one of the benefits of the VA program)

Cashout refis usually have slightly higher rates and closing costs than rate/term refis. Use the cashout amount above to see how much you can access.

VA IRRRL (Interest Rate Reduction Refinance Loan) is designed to help VA borrowers save time and money:

• No appraisal required
• Minimal documentation
• Must have an existing VA loan
• Rates have typically dropped by 0.5% or more
• Can include a VA funding fee (though often waived for IRRRL)

FHA Streamline simplifies the FHA refi process:

• No appraisal in most cases
• Reduced documentation
• Must have an existing FHA loan for at least 6 months
• Rates must result in a net tangible benefit to you
• Still includes the FHA mortgage insurance premium (MIP)

If you have a VA or FHA loan, we'll let you know if a streamline refi is your best option—it can save you time and money.