Question 1

How do I know if refinancing makes sense for me?

Accepted Answer

The key metric is your break-even point — the number of months until your cumulative savings exceed your closing costs. If you plan to stay in the home past that point, refinancing likely makes financial sense. This calculator shows that number automatically.

Question 2

What does it typically cost to refinance?

Accepted Answer

Closing costs on a refinance typically run 2–3% of the loan amount. They include lender fees, appraisal, title, and escrow charges. Some lenders offer 'no-cost' refinances by rolling fees into the rate or loan balance — Dan can show you both options side by side.

Question 3

How much does my rate need to drop to make refinancing worthwhile?

Accepted Answer

The old rule of thumb is 0.5% or more, but the real answer depends on your loan balance, closing costs, and how long you plan to stay. A larger loan balance makes even a 0.25% rate drop worth the cost. The calculator gives you the exact break-even for your numbers.

Question 4

Can I take cash out when I refinance?

Accepted Answer

Yes. A cash-out refinance lets you borrow more than your current balance and receive the difference in cash. It's a common way to fund home improvements, consolidate debt, or cover large expenses. Maximum cash-out limits depend on your loan type and equity.

Question 5

Will refinancing restart my 30-year clock?

Accepted Answer

Only if you refinance into a new 30-year loan. You can refinance into a 20-, 15-, or 10-year term to pay off the loan faster and save on total interest. Dan will show you the trade-off between a lower payment (longer term) and faster payoff (shorter term).

Question 6

Does refinancing affect my credit score?

Accepted Answer

There is a temporary small dip when a hard credit pull is done during the application. Credit bureaus also treat multiple mortgage inquiries within a 45-day window as a single inquiry, so shopping around does not compound the impact.

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