8Twelve Mortgage US
Refinance

Refinancing,
actually worth it.

A refi only matters if the math works for you specifically. We model the full break-even — closing costs, term, rate, and how long you'll stay — so you only sign when it's a real win.

See refinance options
30–45
Day typical close
50+
Lender network
Free
Break-even analysis
Who it's for

A fit if you're…

  • Holding a rate noticeably above today's market
  • Carrying mortgage insurance you could drop with a refi
  • In an ARM nearing its first adjustment
  • Sitting on equity you want to use for renovations, debt, or investment

Rate & term refi

Lower your interest rate, shorten your term, or both — without pulling cash out.

Cash-out refi

Tap home equity for renovations, education, or to consolidate higher-rate debt.

Debt consolidation

Roll high-interest credit cards and personal loans into one lower secured payment.

Streamline (FHA/VA)

Reduced documentation and no appraisal in most cases for eligible existing loans.

Interactive scenario

Rate-and-term refi, $400k balance

Est. monthly P&I
$2,844
$50k$3M
%
1%15%
yrs
5 yrs40 yrs
Monthly P&I
$2,844
Total interest
$573,950
Total paid
$1,023,950

Roughly $265/mo in savings recoups $8,500 of closing costs in about 32 months — a solid refi if you'll keep the home past that.

For illustration only. Numbers are hypothetical and don't represent an offer, rate lock, or guarantee. Actual rates, payments, fees, and qualification depend on your credit profile, the property, the lender, current market conditions, and required taxes & insurance. APR will differ from interest rate. 8Twelve Mortgage is an independent brokerage and arranges — but does not make — loans. Equal Housing Opportunity.

How to know a refi is actually worth it

The right test isn't "is the rate lower?" It's "how long until I recoup the closing costs, and will I still be in this loan past that point?" If your break-even lands at 30 months and you plan to stay 7 years, the refi pays for itself many times over. If you're moving in 18 months, even a meaningfully lower rate may not pencil out.

  • Compare APR, not just rate — APR bakes in points and most fees
  • Account for term reset — restarting amortization can offset interest savings
  • Factor in escrow refunds and prepaid items, which often soften the cash-to-close

The four refinance lanes

Refinancing isn't one product. Each lane solves a different problem; sometimes two of them at once.

  • Rate & term — the classic. Lower rate, lower term, or both
  • Cash-out — replace your loan with a larger one and pocket the difference
  • Debt consolidation — a cash-out used specifically to pay down higher-rate balances
  • Streamline — for existing FHA, VA, or USDA loans, with reduced docs

What about closing costs?

Refi closing costs typically run 2–5% of the loan, similar to a purchase. You can pay them in cash, finance them into the loan, or accept a slightly higher rate in exchange for a lender credit that covers them. Each option has a different break-even — we model all three so you can pick deliberately.

Dropping mortgage insurance

If you took FHA originally and now sit at 20%+ equity, a refi into conventional can remove monthly MIP entirely. Even at a flat or slightly higher rate, the MIP savings can be the entire reason to refinance.

ARMs nearing adjustment

If you're 6–12 months from your first adjustment on a 5/6, 7/6, or 10/6 ARM, the safe move is to refi into a fixed rate before the reset window opens — particularly if today's fixed rate is comparable to your current ARM rate.

Things to weigh

  • Resetting to a new 30-year term lowers the payment but extends total interest. A 20- or 25-year term often hits the sweet spot.
  • Cash-out refis usually price slightly higher than rate-and-term — sometimes a HELOC is a better tool for the same need.
  • Don't refinance just because rates dropped a quarter point; do the break-even math.
  • Avoid rolling short-term debt into a 30-year loan unless you're disciplined about not re-accumulating the balances.
FAQ

Questions buyers actually ask

When does refinancing make sense?+

Generally when the new rate saves enough monthly to recoup closing costs within 24–36 months and you plan to stay past that break-even — or when you need to change the term, drop mortgage insurance, take cash out, or move out of an adjustable rate.

How much does refinancing cost?+

Plan for roughly 2–5% of the loan amount in closing costs — appraisal, title, lender fees, prepaid taxes/insurance, and any points. Some lenders offer credits that offset most of it in exchange for a slightly higher rate.

Will refinancing reset my loan to 30 years?+

Only if you choose a 30-year term again. You can also refinance into 25, 20, 15, or even 10-year terms — useful when rates make a shorter term affordable.

Does refinancing hurt my credit?+

Expect a small short-term dip from the hard pull and a new account, typically recovering within a few months. The long-term impact is usually negligible.

Can I refinance with low equity?+

Yes. Conventional refis can go up to 95–97% LTV in some cases. FHA streamline and VA IRRRL don't require an appraisal in most cases, so equity isn't the limiting factor.

How long does a refinance take?+

Most refinances close in 30–45 days. Streamline programs (FHA, VA, USDA) can move faster because they skip appraisal and re-verification of income/assets.

Run the refi math with us.

A 3-minute application. Soft credit pull. A real rate from a broker shopping 50+ lenders for you.

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