Refinance Programs
| Program | Best For | LTV | Appraisal | Key Benefit |
|---|---|---|---|---|
| Conventional Rate & Term | Lower rate or shorter term | Up to 97% | Required | PMI drops at 20% equity |
| FHA Streamline | Existing FHA borrowers | No max | Not required | No income docs, no appraisal |
| VA IRRRL | Existing VA borrowers | No max | Not required | No income, no appraisal, no PMI |
| USDA Streamline | Existing USDA borrowers | No max | Not required | Reduced paperwork |
| Jumbo Refinance | High-balance loans $766K+ | Up to 80% | Required | Competitive jumbo rates |
When Does Refinancing Make Sense?
- Your rate is 1%+ above today's rates — the breakeven on closing costs is typically 12-18 months
- You want to drop PMI — if your home has appreciated and you now have 20%+ equity
- You want a shorter term — switching from 30-year to 15-year saves massive interest
- You're on an ARM that's about to adjust — lock into a fixed rate before the adjustment hits
- You need to remove a co-borrower — divorce, separation, or estate situations
Streamline refinances (FHA and VA) are the fastest and cheapest refinance options available. No appraisal, no income verification. If you already have an FHA or VA loan, this is almost always the move.
The Breakeven Calculation
Every refinance has closing costs (typically 1.5-3% of the loan amount). Divide the closing costs by your monthly savings to find your breakeven month. If you plan to stay in the home past that date, the refinance pays for itself.
Example: $4,000 in closing costs ÷ $200/month savings = 20 months to breakeven. If you're staying more than 20 months, refinance.
Looking for Cash Out?
If you need to pull equity out of your home, that's a different product. See Cash-Out Refinance & HELOC options here.