Switch lenders. Keep your balance.

There are three primary benefits:

• Secure a Lower Rate: Lower your monthly payments and save thousands in interest.
• Access Home Equity: A cash-out refinance provides funds for renovations, investments, or education.
• Consolidate Debt: Roll high-interest debt into your new mortgage for a single, lower-interest payment.

The ideal time to refinance is when the financial benefit outweighs the costs. You need to calculate if the savings from a new, lower interest rate will be greater than the prepayment penalty for breaking your current mortgage term early. Our calculators can help you determine your break-even point.

A renewal happens at the end of your term, allowing you to sign a new term with your existing lender, often without re-qualifying. A refinance breaks your current term to create a new mortgage, which can be with any lender. Refinancing is necessary to change your loan amount (like a cash-out) but often involves a penalty.

The main cost is the prepayment penalty from your current lender. Additionally, there are other closing costs to consider, which can include legal fees, appraisal fees, and potentially a title insurance fee. It's crucial to factor all these costs into your calculation.