Refinance Review
Refinance when the numbers support the goal.
A lower rate is only one part of the decision. RGI Mortgage helps California homeowners compare the new payment, closing costs, break-even point, loan term, equity, and long-term effect before replacing an existing mortgage.
Start here
Define What the Refinance Should Accomplish
Each goal changes the comparison. A lower payment can come from a lower rate, a longer term, a larger balance, or a combination of those factors.
Change the payment or interest rate
Review whether the new payment supports the goal after closing costs and the new loan balance are included.
Shorten or extend the loan term
Compare the monthly payment, total time in debt, and expected time you may keep the new loan.
Change the rate structure
Compare a fixed structure, adjustable structure, or other available path based on your timeframe and risk tolerance.
Access equity or review mortgage insurance
Evaluate cash-out and mortgage-insurance strategies against the complete cost and risk profile.
Planning Support
Use the right tool before the next step.
Overview
Put the Current and Proposed Loans Side by Side
Current principal balance
Start with the current payoff and compare it with the new loan amount.
Rate, APR, points, and credits
Review the interest rate and APR along with any points, lender credits, and closing-cost tradeoffs.
Payment, closing costs, and break-even period
Compare the new monthly payment with the total costs and the time needed to recover them.
Remaining term and expected timeframe
Consider the remaining term, new term, and how long you expect the loan to stay in place.
What to know
Home Equity Is Not Cost-Free Cash
A cash-out refinance increases the mortgage balance and converts the borrowed amount into debt secured by the home.
For debt consolidation, compare the new mortgage payment, debts paid off, new repayment period, closing costs, total interest over time, and the risk of rebuilding the paid-off balances.
Next steps
What to Expect
1. Review the current loan and goal
Gather the latest mortgage statement, estimated property value, income and asset information, credit profile, and reason for refinancing.
2. Compare available structures
Review rate-and-term, cash-out, fixed-rate, adjustable-rate, and eligible government refinance paths when applicable.
3. Apply and document
Use the secure application and provide the information needed for income, assets, credit, property, insurance, title, and program eligibility.
4. Complete underwriting and review final terms
Confirm the final payment, loan amount, cash to or from closing, costs, rate, term, and any applicable right-to-cancel period.
FAQs
Questions worth answering before you decide.
How much lower should the rate be before refinancing?
There is no universal threshold. The answer depends on the loan balance, closing costs, monthly difference, break-even period, new term, and how long you expect to keep the loan.
Can closing costs be added to the loan?
Sometimes, subject to available equity, appraisal, lender, and program requirements. Adding costs to the loan increases the balance and can increase total interest.
Does a refinance always require an appraisal?
No. Some programs or lender methods may allow an appraisal waiver or alternative valuation, while other files require a full appraisal.
Will a cash-out refinance lower my total debt cost?
Not automatically. It may lower the combined monthly payment, but it can extend repayment, add closing costs, and secure previously unsecured debt with the home.
Is refinancing a good idea if I may move soon?
It depends on whether the expected benefit is likely to exceed the closing costs before you sell or refinance again. The break-even period is an important part of the analysis.