Refinancing your mortgage can open up new possibilities, but it’s easy to run into myths along the way. Over the years, I’ve seen that shopping around—getting at least three quotes on the same day—really pays off. Be sure to compare APRs, not just interest rates, so you get the full picture on lender fees and can negotiate from a position of strength.
Refinancing isn’t free: closing costs typically run between 2% and 5% of your new loan. Before moving forward, take time to calculate your break-even point and make sure the numbers add up for your unique situation. Remember, a lower rate is great—but stretching your loan back out to a new 30-year term can sometimes mean paying more in interest over time, even if your monthly payment drops.
When you refinance, your primary lien is replaced with a new one—so selling your home in the future shouldn’t get complicated. If you’re considering a cash-out refi, take extra care to understand the risks and rewards. And yes, expect a credit check. Having strong credit and a debt-to-income ratio under 36% will help you qualify for the best offers, but if you’ve been turned down before, improvement is possible and many borrowers find success on a second application.
My passion is making sure clients have all the right information to make smart moves—whether you’re working toward homeownership or investing for the future. If you’re thinking about refinancing, let’s make sure you’re set up for success.
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