start portlet menu bar

Web Content Viewer

end portlet menu bar

Ask us what refinance rate we can offer you!

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

start portlet menu bar

Web Content Viewer

end portlet menu bar
start portlet menu bar

Web Content Viewer

end portlet menu bar

Mortgage refinance overview

Refinancing your mortgage with a conventional loan has many advantages. You can get a competitive interest rate when you have good credit and income. You can avoid paying for private mortgage insurance if your home equity is 20% or more. You can refinance more kinds of homes and more types of loans with conventional mortgages too.

Use the calculator below to estimate how much you might save with a mortgage refinance. Keep in mind by refinancing, the total finance charges you pay may be higher over the life of the loan.

icon of an arrow point downward to the right

Lower your interest rate

icon of a calander

Lower your monthly payment

icon of a piggy bank

Save money on interest

icon of a clock that appears to move quickly to the right

Shorten your loan term

start portlet menu bar

Web Content Viewer

end portlet menu bar

How much can you save?

Find out how much you might save by refinancing your home to a lower rate. By refinancing, the total finance charges you pay may be higher over the life of the loan. Change the default values to personalize your savings estimate!

All fields are required.


$



%

%

$

This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

Refinancing might save you
$250 a month

Ask us what refinance rate we can offer you

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

start portlet menu bar

Web Content Viewer

end portlet menu bar

Choose the mortgage refinance that’s right for you!

At Freedom Mortgage, we offer refinancing on conventional home loans, which are the mortgages many homeowners have across the United States. We also offer refinancing for VA, FHA, and USDA loans.

Your refinancing choices depend on the mortgage you have and the mortgage you want. You can refinance any type of mortgage with a conventional loan. Streamline refinances are only available for VA, FHA, and USDA loans. Our loan comparison can help you decide.

icon of a house

Conventional Refinances

  • All loan types are eligible
  • Application requires more paperwork
  • Mortgage insurance not required with 20% home equity
  • Closing takes more than 30 days
VA Medal icon

VA IRRRL (Streamline) Refinances

  • Only VA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance not required
  • Closing generally takes less than 30 days
Learn More
fha icon

FHA Streamline Refinances

  • Only FHA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance required
  • Closing generally takes less than 30 days
Learn More
icon of a house with a dollar sign in the middle

Refinance & Remove PMI

  • Requires 20% home equity to remove mortgage insurance from conventional loans
  • FHA loans refinance into conventional loans
  • Application requires more paperwork
  • Closing generally takes more than 30 days
Learn More

Looking for more detail?

Our full loan comparison table can help you decide.

start portlet menu bar

Web Content Viewer

end portlet menu bar

Mortgage refinance fees and requirements

Conventional mortgage refinances are sometimes called “full document” refinances because you need to complete a new application, provide a new set of income and financial documents, and pay a new set of closing costs. You will also need to meet credit, income, and financial requirements to get your refinance approved. Here’s what you need to know about how mortgage refinance works.

New application and documentation

You will need to complete a new application and provide income and financial documents like current pay statements and tax returns. Learn about applying for a mortgage

New credit check

We will probably check your credit score before we approve your refinance. Your credit score can affect the interest rate we may offer too. Learn more about credit scores

New home appraisal

You may need a new home appraisal to estimate the current fair market value of your house. A home appraisal typically costs $300 to $400.Learn more about home appraisals

Private mortgage insurance

With a conventional mortgage refinance, you need at least 20% equity in your home or you will need to pay for private mortgage insurance (PMI). According to Freddie Mac, homeowners can expect mortgage insurance to cost between $30 and $70 per month for every $100,000 they borrow.Learn more about PMI

Closing costs

Closing costs for mortgage refinancing can include lender fees, discount points, and more. You may need to pay property taxes and homeowners insurance premiums too. According to Freddie Mac, the average closing costs for refinancing a mortgage are approximately $5,000.Learn more about closing costs

Loan disclosures and closing

Once you submit your application, you will need to review and sign loan disclosures. You’ll also need to attend the closing of your new mortgage.Learn more about disclosures

start portlet menu bar

Web Content Viewer

end portlet menu bar

When you refinance your home, you pay off your current mortgage and replace it with a new mortgage. You typically refinance your mortgage to lower your interest rate, which might help you reduce your monthly payments or save money in interest payments over the life of the loan. You can also change your loan term when you refinance.

Here’s an example of how you might refinance your home. Pretend you bought a house five years ago for $275,000. You made a $25,000 down payment and financed the rest with a $250,000 conventional mortgage that has a 4.25% fixed interest rate and a 30-year term. Because your down payment was less than 20%, your lender required you to pay for private mortgage insurance (PMI).

Today the value of that home has increased to $300,000. You’ve paid down the mortgage by $25,000 so your current principal balance is $225,000. You see lenders advertising 3% mortgage refinances rates. You pay off your current mortgage and replace it with a new mortgage that has a 3% interest rate and principal balance of $225,000.

Because your home equity increased since you bought the home, you aren’t required to pay for private mortgage insurance. You also decide to reduce your loan term and get a 15-year mortgage. This increases your minimum monthly payment but also helps you save money on interest by paying off the mortgage faster. Learn more about how to refinance a mortgage.

The best time to refinance your mortgage is when current interest rates are significantly lower than the rate you have on your mortgage now. That's because nearly all mortgage refinances come with closing costs you need to pay or add to your loan amount. You want to make paying these costs worthwhile when you refinance your home and lowering your interest rate is often the best way to do it.

Our refinance calculator can help you decide when refinancing makes sense. The calculator lets you enter your current interest rate and loan information as well as the new interest rate you think you might get. It then estimates your savings and compares these savings to the potential costs. You might pay anywhere between 2% and 6% of your loan amount in closing costs when you refinance according to Forbes.com.

Think about how long you plan to live in your home before you refinance your mortgage. Refinancing often does not make sense if you plan to sell your house in the near future. That's because you might not realize enough savings from lowering your rate before you sell to offset your closing costs (this is called "breaking even"). Learn more about the costs of refinancing.

Finally, look at the total amount of money you will pay in interest over the life of your new loan. Sometimes when you refinance your mortgage, you can end up paying more for interest than you would have if you’d kept your old mortgage. For example, this can happen when you extend the term of your loan. If you have 20 years left on your current mortgage and you refinance to a new 30-year mortgage, you might end up paying more money in interest even with a lower rate because you are paying back the loan over a longer period of time.

Existing Freedom Mortgage customers can often keep their loan term the same when they choose to refinance their mortgage with us.

Getting a lower rate and saving money on interest payments over the life of the loan are two benefits of refinancing your home. But they aren’t the only ones! Other benefits of refinancing include:

  • Lower monthly mortgage payments. Refinancing a mortgage may help to reduce the size of your loan payments each month. You can use the savings to invest in college and retirement accounts, pay bills, pay down other debts, and more. Keep in mind that by refinancing a home loan to lower your payments, the total finance charges you pay may be higher over the life of the loan.
  • Remove mortgage insurance. Some homeowners refinance to stop paying mortgage insurance. If you have an FHA loan, refinancing to a conventional loan might help you stop paying FHA mortgage insurance premiums. You don’t always need to refinance your mortgage to get rid of mortgage insurance. If you have a conventional mortgage, you should be able to stop paying for private mortgage insurance once your home equity reaches 20%.
  • Shorten the life of the home loan. When you pay off a mortgage sooner than the terms require, you might save money on interest. That’s because you are paying back the interest over a shorter period of time. Some homeowners refinance mortgages to shorten the life of their loans. Keep in mind that it is often not necessary to refinance your home to pay off a mortgage faster. You can simply make extra payments.
  • Make mortgage payments more predictable. If you have an adjustable rate mortgage, you can refinance to a fixed rate mortgage and make your monthly payments more predictable. With an adjustable-rate mortgage, your interest rate and monthly payments can change every year. With a fixed rate mortgage, your rate and payments stay the same.

No, a down payment is not required to refinance your home. You will usually need to pay closing costs when you refinance. Sometimes you can add these costs to your loan amount. Other times, you will need cash to pay these costs at closing.

How much you might save depends on your current rate, the new rate a lender might give you, how much you owe on your mortgage, your closing costs, the number of years you have left on your loan, and other factors.

Our home refinance calculator can help you decide if refinancing makes sense. The calculator lets you put in your current interest rate and loan information as well as the new interest rate you think you might get. It then estimates your savings and compares these savings to the potential costs.

Breaking even on a mortgage refinance means that your savings are equal to your costs. For example, if your closing costs are $2,400 and you’re saving $100 per month on your new loan, it will take two years (24 months x $100 per month saved) to break even. Refinancing can make financial sense when you reach your break-even point quickly or when you plan to live in the house for many years after you refinance. If it will take several years to break even or you plan to sell your home relatively soon, you might decide that refinancing doesn’t make sense.

In order to qualify for refinancing, you will need to meet your lender’s credit, income, and financial requirements. These typically include being current on your mortgage payments, meeting the lender’s minimum credit score requirements, having enough home equity as measured by your loan-to-value ratio, having enough income as measured by your debt-to-income ratio, and having the money to pay your closing costs.

Refinancing your home requires getting a new mortgage. You pay off your current mortgage and replace it with a new mortgage that has better rates or better terms. Refinancing will typically require you to complete a new application, provide documents that confirm your income and finances, review and sign disclosures, pay closing costs, and attend the closing of your new mortgage. You will also need to meet your lender's credit, income, and financial requirements to get your refinance approved.

How much paperwork is required and how much it costs to refinance depends on the type of mortgage you choose. When you are refinancing a conventional loan, the process is similar to getting a mortgage to buy a house. You have to complete a new application, provide a new set of financial documents, and pay a new set of closing costs. For these reasons, conventional refinances are sometimes called "full document" refinances. Learn more about refinance requirements.

A home appraisal is often required when you refinance a conventional mortgage. An appraisal estimates your home’s current value. Lenders use your house’s value to calculate a loan-to-value ratio (LTV), which is a percentage you get by dividing the size of your mortgage by the value of your house. Lenders often have a maximum LTV for mortgage refinances. Your refinance needs to be below this maximum to get your application approved.

There is no limit on the number of times you can refinance your home. However, you only want to refinance when it makes financial sense. There can also be minimum waiting periods between refinances depending on the kind of loan you have. Learn more about how often you can refinance.

The Freedom Mortgage Difference

We are committed to making you a life-long customer with exceptional mortgages and exceptional service!

We’ll help you choose the right mortgage and work with you to make buying a home or refinancing easy. We'll also keep an eye on your rate and let you know when you can lower your payment or get cash from your home's equity.

We are thankful for our 1.8 million customers. It’s because of homeowners like you that we’ve grown over the past 30 years to become one of the top lenders in America.

We are proud to support veterans and service members with charitable work like raising $93,000 to buy school supplies for military families. We are also committed to fighting hunger in communities across the nation.