A refinance replaces your current mortgage with a new one. It can lower your payment, change your term, remove mortgage insurance or turn equity into cash, but it has closing costs, so the math matters.
Do
Know your goal
Lower payment, shorter term, cash out, removing mortgage insurance or switching from an adjustable rate. My goal: ______________.
Run the break-even
Divide total closing costs by your monthly savings to see how many months it takes to come out ahead. Plan to stay at least that long. Costs $______ ÷ savings $______ = ______ months.
Keep paying your current mortgage
Make every payment until the loan pays off. A payment due before closing still has to be paid on time.
Keep your insurance active
Your homeowners policy, plus flood or HO-6 if you have them, must stay in force. Have your declarations page ready.
Have your documents ready
Your current mortgage statement, income documents, bank statements, insurance declarations and HOA contact if you’re in a condo or HOA.
Compare total cost, not just the payment
Starting a new 30-year term can lower the payment but raise the total interest you pay. Compare your Loan Estimate line by line.
Don't
Don’t skip a payment
Skipping a payment because you’re refinancing can cause a late payment on your credit and delay or derail the new loan.
Don’t open new credit
New cards, car loans or financing can change your debt-to-income ratio and your score before closing.
Don’t assume your home’s value
The appraisal sets the value the lender uses. A lower value can change your options, especially for cash-out.
Don’t take cash out without a plan
Cash-out turns home equity into debt secured by your home. Know what it’s for and how it changes your payment.
Don’t make big undocumented deposits
Large deposits that aren’t your paycheck may need a paper trail. Ask before moving money.
Don’t forget the waiting period
For many refinances of your primary home, federal law gives you three business days after signing to cancel, so funds usually go out after that.
Want me to run your numbers?
Send me your current mortgage statement and your goal, and I’ll show you whether a refinance or a home equity option makes more sense. No rates promised up front; it depends on your full scenario.
Questions? Call or text Kareme Shorter at (954) 913-7865 · callkareme.com
General information, not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability. Requirements vary by lender and loan program.
Kareme Shorter, Mortgage Loan Originator, NMLS #1722684 · Ascension Mortgage, Company NMLS #2511500 · Equal Housing Opportunity. Residential mortgage loans are offered in Florida only. Commercial and non-QM business-purpose (investor) financing may be available in other states where permitted; licensing varies by state. Verify licensing at nmlsconsumeraccess.org.