A free PDF that walks the breakeven math, the most common refi traps, and a clear framework for choosing rate-and-term vs cash-out.
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The clean cases are when the new rate is meaningfully lower than your current rate, when you want to shorten the term to save on lifetime interest, or when you want to remove mortgage insurance now that you have built equity. Sometimes a rate and term is also used to switch out of an adjustable loan into a fixed one for predictability.
Add up the closing costs of the new loan. Divide that by your expected monthly savings. The result is roughly the number of months it takes to recoup the cost. If you plan to stay in the home well past that point, the math usually works. If you are likely to sell or refinance again before then, it probably does not.
Resetting a 30-year clock can lower the payment but increase the total interest you pay over the life of the loan. Be clear on which goal matters most to you before you sign.
A current mortgage statement, your most recent pay stubs, two years of tax returns, and recent bank statements are usually enough to start. Your loan officer will walk through your current rate, the new options available, and the breakeven math before you commit to anything.
Related glossary terms
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