<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1955936548054264&amp;ev=PageView&amp;noscript=1">

When to Refinance Your Home

< Back to Articles | Time to Read: 5 minutes

When you first bought your home, you probably took advantage of whatever option made the most sense at the time. For a lot of homeowners, that means taking on a 30-year mortgage. But what happens when it’s years later and you don’t feel like you’re making any progress in paying down your home loan or building up equity?

The fact is your current mortgage could be keeping you poor. But guess what? We can help you change that.

Refinancing can be key in saving money and building equity if you do it right.

You’re likely aware of the historically low interest rates available for home buyers right now. These rates are available to those of you who already own, as well. Before you jump into refinancing though, there’s some things you need to know.

                                                                            Free Refinancing Starter Kit


Refinancing will only save you money if you do so in a way that makes sense. For example: Replacing your current 30-year mortgage with another 30-year mortgage? That just doesn’t make sense.


Even if your interest rate is lower, odds are that tacking on another three decades of payments to your mortgage won’t save you money in the long run. We want you to pay less AND own your home more quickly, not be stuck making house payments longer than necessary!

Exception: If you plan on selling in the next few years, refinancing for another 30-year mortgage at a lower rate could be beneficial, depending on the interest rate. Your Churchill Home Loan Specialist will be able to walk you through all your options and help you decide what’s right for you.

                                I want to speak to a Home Loan Specialist about refinancing!

What should you do instead?

The best option for refinancing is doing so at a lower rate and for a shorter time frame. The shorter loan will likely have a higher monthly payment, but it’s important to look at the overall total of the mortgage, not just what you will pay each month. Remember, by cutting the number of payments in half, you’ll save an incredible amount in interest over the life of your loan!

Right now, rates are still unbelievably low, and most homeowners could benefit from refinancing.

Let’s look at an example of how you could save money on a 15-year mortgage versus a 30-year mortgage. Interest rates for a 15-year loan term are typically lower than a 30-year loan term. So, if your original loan amount was $350,000 and you now want to refinance the balance of $225,000, you could save substantially (even if you factor in closing costs) by choosing a 15-year mortgage. 

Every refinance looks different, so it’s important to know your current loan balance, loan term, and interest rate. That way you’ll be able to see where you can adjust your mortgage and save money by refinancing.

interest-rate-comparison-toolThe money you save from interest could be the down payment on an investment property, your child’s college education, or a contribution toward retirement. No matter what you choose to do with the money you save, being a debt-free homeowner 15 years sooner can be life changing!

                                                Refinance Calculator


Now that you see how much you could save, let’s talk about the costs you might need to consider before refinancing.

  • Appraisal Fee. An appraisal will most likely take place to figure out the current value of the home. These fees vary but see an average of $300-$600.
  • Credit Report Fee. Your credit will be pulled by your lender, resulting in a charge. This is usually around $40.
  • Lender Origination Fees. This fee is for underwriting and processing your home loan. It will vary depending on the mortgage company you work with.
  • Attorney Fee. If a lawyer is required to review the paperwork for your mortgage, you will be charged a fee. The amount will vary based on the attorney you use.

Overall, homeowners can expect to spend about 2-4% of the amount of their home loan when refinancing. Figuring out the total closing costs before you choose to refinance with a lender is important in determining when you will break even. This will help you to decide if refinancing is right for you.

Keep an eye on interest rates with Rate Watch!

Recently, Fannie Mae and Freddie Mac changed their refinance guidelines. This has created the opportunity for more homeowners to refinance. If you were recently unable to get approved for a refinance, we’re here to help!

Fannie Mae’s RefiNow*

  • If your mortgage is currently owned by Fannie Mae or Freddie Mac
  • Your income is at or below of 100% of the Area Median Income limit for where your home is located
  • Your mortgage is has been open at least 12 months
  • You are lowering your interest rate at least 0.50% and your mortgage payment is going down
  • Your mortgage payment has been paid on time
  • Your credit score is at least 620
  • Your debt-to-income ratio is 65% or less
  • If an appraisal is required, you will receive a $500 credit

Your home is the biggest investment you’ll make, but that doesn’t mean you need to be financially limited because of it. We want to make sure you’re making the best decisions for you, your family, and your future. You can count on us to guide you through every step of your refinance, making sure you understand the process and feel confident in your decision.

Ready to start building wealth through your home? Then we’re ready to help!

* Additional guidelines may apply.
Programs may not be available in all states or locations. Total finance charges may be higher over the life of the loan in scenario listed above.

Are you buying a home or refinancing?

Where are you planning to buy a home?

Please Select a State

What is your full name?

Please Enter a Name
Please Enter a Last Name

What is your email address?

Please Enter a Valid Email Address
  We won't share your information.

Next, we need to verify a phone number.

Enter a Valid Phone Number
Please Select a Message Type

Enter your phone number and we'll text you a 6-digit security code to verify it's you. Standard texting and data rates may apply. For more information, read our Privacy Policy.

Enter the 6-digit code sent to your device.

 Code sent to +1234567890

Finally, how did you hear about us?

Please Select an Option

By submitting this form, I/we agree to your Privacy Policy Terms of Use and authorize Churchill Mortgage Corporation and/or their Preferred Provider for our area and/or The Churchill Agency to receive the above information to assist in obtaining a home loan.

I/we also authorize Churchill Mortgage Corporation, The Churchill Agency and/or their Preferred Provider for our area to contact us regarding but not limited to mortgage and insurance services and products via telephone, mobile phone (including through automated dialing), and/or email, even if telephone numbers or email I/we provide are on any Do Not Call/Contact Registry, such as corporate, state, or the National Do Not Call Registry. The submission of this form does not constitute in any way a formal loan application or a commitment for a loan. By communicating with us by phone, you consent to calls being recorded and monitored. By participating, you consent to receive text messages sent by an automatic telephone dialing system. Consent to these terms is not a condition of purchase.

Your answer will NOT negatively affect your mortgage application. Your answer does not mean the Lender or Other Loan Participants agree to communicate or provide documents to you in your preferred language. However, it may let them assist you or direct you to persons who can assist you. Language assistance and resources may be available through housing counseling agencies approved by the U.S. Department of Housing and Urban Development. To find a housing counseling agency, contact one of the following Federal government agencies. U.S. Department of Housing and Urban Development (HUD) at (800)569-4287 or www.hud.gov/counseling

Es probable que su transacción de préstamo hipotecario suceda en inglés. Por medio de esta pregunta, solicitamos información para determinar si existen comunicaciones disponibles a su servicio, en su idioma preferido. Sírvase tener en cuenta: posiblemente NO hay comunicaciones disponibles en su idioma preferido.

Thank You!

Thank you for choosing Churchill Mortgage to help you with your home loan needs!

Our team is already hard at work connecting you with your Home Loan Specialist. Rest assured that we've received your request and will be in touch with you shortly.

social proof logos

Already working with someone at Churchill?

Find Your Home Loan Specialist

Please Select a Loan Officer