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    Mortgage Refinance Coach

    Should you refinance? The math, in plain English.

    When refinancing makes sense

    • Current rates are 0.75-1% LOWER than your existing rate AND you\'ll stay in the home 3+ more years.
    • You can shorten loan term (30 → 15 year) and afford the higher payment.
    • You want to drop PMI (private mortgage insurance).
    • You have an adjustable-rate (ARM) and want to lock in a fixed rate.
    • You need cash and have lots of equity (cash-out refinance).

    When NOT to refinance

    • Rate savings under 0.5%.
    • You plan to sell in 2-3 years.
    • Closing costs eat the savings.
    • Resetting a mostly-paid mortgage to 30 years (you\'ll pay more interest over life of loan).
    • Your credit score has dropped since the original mortgage.

    The math — break-even

    Closing costs (typically $3,000-6,000) ÷ monthly savings = months to break even.

    Example: Save $200/month. Closing $4,000. Break even at month 20.

    If you\'ll stay past break-even by years — refinance is profitable.

    Where to shop

    • Bankrate.com / NerdWallet — current rates by zip code.
    • Your existing lender — sometimes offers "streamline" refinance with lower closing costs.
    • Local credit union — often cheapest. NavyFed, USAA for military / families.
    • Better.com, Rocket, LoanDepot — online lenders, competitive rates.
    • Get 3-4 quotes the SAME DAY (rates change daily).

    Watch out for

    • "No closing cost" refis — the costs are rolled into the loan or a higher rate.
    • Cash-out refinance — fine for clear purposes, but don\'t refi to fund vacations.
    • Resetting a 30-year when you\'re 65 — you might pass before paid off, leaving heirs with the mortgage.
    • HELOC alternative — for cash, a HELOC may be cheaper than cash-out refi.
    • Appraisal fee — $400-600. Built into closing.

    For seniors specifically

    • If close to paying off — DON\'T restart 30 years. Better: refi to remaining term (15-year, 10-year).
    • If income is reduced — lower payment may help cash flow.
    • Check VA loan refinance if veteran — usually lowest rate available.
    • Reverse mortgage is NOT a refinance — different product entirely. (See our Reverse Mortgage Explained tool.)

    Free tools

    Bankrate refinance calculator, NerdWallet, or your bank\'s app. Plug in current loan + new rate. Tells you break-even and lifetime savings instantly.