Honest Loans
Loan programs

Refinance

Replace your current mortgage with one that fits you better.

Refinancing pays off your existing mortgage with a new one — ideally at a lower rate, a shorter term, or with a monthly payment that fits your budget better. A cash-out refinance goes one step further and converts part of your home's equity into cash at closing.

How it works

Rate-and-term vs. cash-out

A rate-and-term refinance changes only your rate and/or loan length. A cash-out refinance replaces your loan with a larger one and gives you the difference in cash — useful for renovations or paying off higher-interest debt.

When it tends to make sense

Rates have dropped since you got your loan, your credit has improved, you want to remove FHA mortgage insurance, or you need to remove a co-borrower. A lender can run the break-even math with you.

Closing costs still apply

A refinance has closing costs like any mortgage. They can often be rolled into the loan, but it's worth comparing how long it takes for the monthly savings to cover them.

A good fit if you're…

  • Lowering your monthly payment
  • Paying your home off faster with a shorter term
  • Turning equity into cash for big expenses

This page is educational and doesn't constitute financial advice or a loan offer. Honest Loans is a lead-generation service, not a lender — program availability, rates, and terms come solely from independent lending partners and are subject to their approval and requirements.