Lower your rate, shrink your payment, own your home sooner

Compare your monthly savings against the closing costs to find your break-even point — the month when the savings finally outweigh the upfront cost. If you plan to stay in the home past that point, refinancing often makes sense.

Yes. Refinancing carries closing costs — often a few percent of the loan amount — covering the appraisal, title, and lender fees. Some loans let you roll these into the balance instead of paying up front.

It replaces your mortgage with a larger loan and gives you the difference in cash, drawn from your home equity. Homeowners commonly use it for renovations, debt consolidation, or other major expenses.

It can. A new 30-year loan restarts a 30-year clock, which may raise total interest even at a lower rate. Choosing a shorter term, or one that matches your remaining years, helps avoid that.

Checking estimated rates usually uses a soft inquiry with no impact. Formally applying triggers a hard inquiry, which may lower your score slightly for a short time.

Requirements vary by loan program and lender, but many look for at least a modest cushion of equity. Cash-out refinances and dropping mortgage insurance generally call for more.