Mortgage Refinance

A rate and term refinance replaces your current mortgage with a new one to change the interest rate, the length of the loan, or the loan type, without taking meaningful cash out. It only makes sense when the savings outweigh the cost of doing it.

Justin Lazzaro, NMLS #1229453 | Reasy Financial, LLC, NMLS #2446155 | Licensed in Arizona, Pennsylvania, Florida, and Texas

Who a refinance fits

A refinance is a math problem first. I run the numbers with you before anyone fills out an application.

Owners who can improve their loan

A lower rate, a shorter term, or dropping mortgage insurance can each justify a refinance when the numbers work.

Owners who plan to stay

Closing costs are paid up front or built into the loan. You need to keep the home long enough to come out ahead.

Who it usually does not fit

If you expect to move soon, or your current rate is already below the market, refinancing the whole balance rarely pays.

How a refinance works

1

We compare your loan to today's options

I look at your current rate, balance, and mortgage insurance, then price the alternatives across lenders.

2

We find the break-even point

Total cost divided by monthly savings tells you how long it takes to come out ahead. If that date is past when you expect to move, we stop.

3

The loan is documented and closed

Most refinances need income documents and an appraisal. Streamline programs for existing FHA, VA, and USDA loans can skip some of that.

Streamline refinances must show a clear benefit to you and require a history of on-time payments. Lenders can add their own requirements.

How it compares to other options

The right tool depends on whether you want a better loan, cash from your equity, or both.

How a rate and term refinance compares to other options
OptionWhat it doesUsually a fit when
Rate and term refinanceReplaces your mortgage to improve the rate, term, or loan typeToday's options beat your current loan and you plan to stay
Cash-out refinanceReplaces your mortgage with a larger one and pays you the differenceYou need funds and your current rate is near or above the market
HELOC or second mortgageAdds a second loan and leaves your first mortgage aloneYour first mortgage has a low rate worth keeping
VA refinanceStreamline or cash-out options for eligible veteransYou have a VA loan or VA eligibility

Three things to know before you apply

1

The clock can restart

A new loan with a full-length term can lower the payment and still cost more interest over time. We look at both numbers.

2

Closing costs are part of the math

Lender fees, title work, and an appraisal when required all count. A loan with no out-of-pocket cost usually carries a higher rate instead.

3

Your home's value matters

Equity affects pricing and whether mortgage insurance applies. An appraisal or an automated valuation will set the number the lender uses.

Guidelines change. I confirm current requirements with the lender before quoting anything. You can test your own numbers with the refinance calculator.

Common questions about refinancing

Short answers to common questions. Program rules vary by lender, so treat these as general guidance, not a loan decision.

When does refinancing make sense?

When the monthly savings repay the closing costs well before you expect to sell or refinance again, or when it removes mortgage insurance or a risky loan feature.

Do I need an appraisal?

Often, yes. Some loans qualify for an appraisal waiver, and streamline programs for FHA, VA, and USDA loans frequently do not require one.

Can I refinance an FHA loan into a conventional loan?

Yes, if your credit and equity support it. That is the usual way to stop paying FHA mortgage insurance.

How soon can I refinance after buying?

Most programs require a waiting period and a record of on-time payments first. The length depends on the loan type.

Will refinancing hurt my credit?

The application creates a credit inquiry and a new account, which usually has a small, temporary effect.

Where do you offer refinances?

I am licensed in Arizona, Pennsylvania, Florida, and Texas, and I compare refinance pricing across multiple wholesale lenders.

Ready to talk it through?

Pick a time that works for you. We'll go over your goals and next steps, no pressure, just a conversation. Prefer to call or text instead? Reach me directly at (412) 638-4982, or book a quick Zoom if that's easier.