REFINANCE
Is Refinancing Right for You?
Compare the Full Cost of Refinancing
A refinance may change your payment, loan term, interest cost, or access to equity. To decide whether it helps, compare your current mortgage with the proposed loan, including closing costs and how long you expect to keep the property. A lower monthly payment alone does not show the full cost over time.
If your goal is to use home equity, Matt can also discuss whether a cash-out refinance or a home equity loan (HELOAN) better fits your situation. A cash-out refinance replaces your existing mortgage; a HELOAN may allow you to keep that first mortgage in place. Available terms and qualification depend on the lender’s review.
Check out if refinancing makes sense for you by using our Mortgage Refinance Comparison Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
$
each month
$
in interest over the life of the loan
You can shorten your term by up to
Saving
$
in interest payments
by refinancing and continuing current payments.
Switch to cash savings to see if refinancing makes sense.
Savings over time
(total interest saved - cost of refinancing)
Year 1 $0
Breakeven in
Interest paid over time
Current Loan
New Loan with Early Payoff
Total Saved
Current Mortgage
Current Balance
Current Interest Rate
Monthly Payment
Payoff Date
Total Interest
New Mortgage
Refinanced Loan Amount
Refinanced Interest Rate
Monthly Payment
Payoff Date
Total Interest
Interest Savings
Refinance Fees
New Monthly Payment:
Loan amount
Cash out
Cash in
Refinance fees
Roll Fees Into New Loan?
Total loan amount
Interest rate
Loan term
Monthly savings
Timeframe
Total Interest Savings
This is the sum of all the interest you will save over the life of the loan after refinancing.
Year 1 $0
Monthly Savings Breakdown
Current
New
Savings
$1,703
-
$3,065
=
-$1,362
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: (the amount borrowed)
- Interest payments: (the cost of borrowing)
Payoff Savings Breakdown
This is the interest and time savings you will achieve by refinancing and continuing current payments.
Interest Savings
$
Time saved on mortgage
Total interest (original)
$
Total interest (with current payments)
$
Principal + Interest (original)
$
Principal + Interest (with current payments)
$
Original payoff date
New payoff date
Amortization Schedule Breakdown (With current payments)
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: (the amount borrowed)
- Interest payments: (the cost of borrowing)
Is refinancing right for you?
Here are the most common reasons for refinancing:
- You have a fixed-rate mortgage with a high interest rate, and are looking to get a lower interest rate
- You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
- You have two mortgages and would like to consolidate them into one
- You have a long-term loan and would like a shorter-term loan so you can pay it off and build equity more quickly
- You have a short-term loan and would like a longer-term loan so as to reduce your monthly payments
- You want to move from an interest-only mortgage to a loan that pays down the principal
- You want some extra cash to make a purchase or to pay off other debt
Benefits of refinancing
Refinancing makes sense if you fit into one of the categories listed above. If you’re curious about your specific scenario, reach out today and we’ll take a look!
Four Common Refinancing Options:
Cash-Out or Cash Back Refinance
A cash-out refinance may allow eligible homeowners to replace their existing mortgage with a new loan and access a portion of their available home equity as cash.
Funds may be used for eligible purposes such as home improvements, major expenses, or other financial needs. Because refinancing changes your existing mortgage, it is important to compare the new loan terms, costs, and payment with your current financing.
Lower Fixed-Rate Loan
If market conditions and your circumstances allow, refinancing may provide an opportunity to replace your current mortgage with a different fixed-rate loan.
A lower interest rate could potentially reduce your monthly principal-and-interest payment or overall borrowing cost. However, refinancing involves closing costs and a new loan term, so the potential savings should be considered in the context of your long-term plans.
Shorter-Term Loan
If your goal is to pay off your mortgage sooner, refinancing into a shorter loan term may be worth considering.
A shorter-term mortgage may help you build equity faster and potentially reduce the total interest paid over the life of the loan. However, shortening the loan term will often result in a higher monthly payment, so it is important to consider your budget and overall financial goals.
Whether refinancing makes sense depends on your current mortgage, available loan terms, closing costs, expected time in the home, and other financial considerations.
Longer-Term Loan
Refinancing into a longer loan term may reduce the required monthly payment in some situations by spreading repayment over a longer period.
However, extending the repayment period may also increase the total interest paid over time. Matt can help you compare the monthly payment, loan term, refinancing costs, and long-term impact before deciding whether this approach fits your goals.
Experience That Goes Beyond the Loan
Meet Matt Roth
Real Estate Broker | Mortgage Loan Broker | Rocket Pro Partner
With 33+ years of experience in California real estate, Matt Roth brings a unique advantage to the mortgage process: he understands both the financing and the real estate transaction. His reconciled sales history includes 87 unique closed real estate sales totaling $57,291,499 across TheMLS and SDMLS, excluding leases, rentals, and duplicate transactions.
As a California Mortgage Loan Broker partnered with Rocket Pro, the wholesale division of Rocket Mortgage, Matt helps homebuyers, homeowners, and real estate investors explore competitive financing solutions while providing personalized, hands-on service from application through closing.
Originally licensed in California on April 7, 1993, Matt obtained his Real Estate Broker license on July 6, 2004. He understands the offer, appraisal, contingencies, escrow, and closing process—and what it takes to keep a transaction moving.
Matt Roth | CA DRE #01153470 | NMLS #1986483 | Co. NMLS #2102875
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