When does refinancing make sense?

When the rate savings recoup closing costs in 24-36 months and you plan to stay long enough to benefit.

How much equity do I need?

Rate/term refis usually require 5%+ equity. Cash-out requires 20%+.

How long does it take?

A full refinance commonly runs 30 to 45 days. A streamline refinance skips the appraisal and most of the documentation, so it moves faster.

What are typical costs?

2-4% of loan amount, sometimes rolled into the new loan.

Loan option

Refinance

A refinance replaces your current mortgage with a new one - often for a lower rate, shorter term, or to pull out cash for major expenses.

Get a quote Pre-qualify

What Refinance actually is.

A refinance is a powerful tool when used correctly. Rate-and-term refis lower your rate and/or shorten your term. Cash-out refis pull equity out. Streamline refis (FHA, VA) skip the appraisal and most documentation.

The right refi for you depends on three things: where rates are today, where they are likely to go, and how long you plan to stay in the home.

Datum Home Lending runs a transparent break-even analysis on every refi quote so you know exactly when the savings cross your closing costs. No refi makes sense if you sell before break-even.

Illustrative sample figures for a template demonstration. Not a rate quote, not an offer to lend, and not live market data.

Who this fits

Homeowners with rates above current market
Borrowers who want to remove PMI
Owners shortening from 30 to 15 year
Anyone with a substantial change in financial profile since original loan

Check whether you qualify

What this program buys you.

Lower Rate: A lower rate cuts the interest portion of every remaining payment. The break-even tells you whether it clears the closing costs.
Remove PMI: Refinance to conventional once you reach 20% equity.
Shorten Term: Move from 30 to 15 year and pay less interest over time.
Cash Out (separate program): Pull equity for renovations, college, debt consolidation.

The process

Four moves from first call to keys.

Each step has one job and one owner. You always know which of the four the file is sitting in.

01Break-Even AnalysisWe confirm the refi pays for itself in your planned timeframe.
02ApplyStandard mortgage application - most refis run smoother than a purchase.
03AppraiseAppraisal confirms current home value.
04CloseTypical 30-45 day refi timeline.

Questions this program raises.

If yours is not here, ask it. You will get an answer in writing from the officer who would work the file.

Other programs

Get this priced against your own file.

Tell us the scenario and we will come back with real figures for Refinance, and for the programs you did not ask about, so you can see all of them at once.