Lower the Rate. Shorten the Term. Or Tap the Equity.
Your mortgage isn't just a loan. It’s part of a bigger financial picture that can change as your life, goals, and home equity change. Refinancing replaces your current mortgage with a new loan. Depending on what you want to accomplish, that could mean adjusting the terms of your mortgage or accessing some of the equity you’ve built in your home.
Things to Know
- Rate/term · Cash-out
- VA · FHA · USDA
- Varies by program
- 10–30 yr
- 2–5%
Ready to talk?
A loan officer who answers the phone, knows this program, and will tell you plainly whether it fits.
Disclaimer: Ark-La-TexFinancial Services, LLC d/b/a Benchmark Mortgage – NMLS ID #2143 (www.nmlsconsumeraccess.org) 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. 972-398-7676. This advertisement is for general information purposes only, no guarantee is expressed or implied. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Not all applicants will qualify. Some products may not be available in all states and restrictions apply. (https://benchmark.us)
Rate/term vs. cash-out
A rate/term refinance replaces your current loan with a new one that may offer a lower interest rate, a different term, or both, without significantly changing your loan balance. A cash-out refinance lets you tap into your home's equity by borrowing more than you currently owe and receiving the difference in cash. Rates, equity requirements, and borrowing limits vary by loan program.
Streamline refinances by program
If you already have a government loan, there’s a faster lane: the VA IRRRL, FHA Streamline, and USDA Streamlined-Assist all reduce documentation and in most cases skip the appraisal. They exist to lower your rate quickly, not to pull cash out.
The break-even math
Every refinance has closing costs. Divide those costs by your monthly savings and you get the number of months until the refinance pays for itself. If you’ll be in the home longer than that, it’s usually worth doing. Our refinance calculator runs this for you.
Refinance vs. HELOC
If your current first-mortgage rate is low, a cash-out refinance can cost you that rate. A HELOC sits behind your existing loan as a second lien and leaves the first mortgage alone. We’ll show you both.
What a refinance costs
Typically 2–5% of the loan amount, and some options trade a slightly higher rate for lower or no closing costs. There’s no universal right answer — only the right answer for how long you plan to stay.
The information provided by this calculator is for illustrative purposes only and accuracy is not guaranteed. The values and figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. This calculator does not have the ability to pre-qualify you for any mortgage or loan program. Qualification for mortgages or loans requires additional information such as credit scores and existing debts which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. All information such as interest rates, taxes, insurance, monthly mortgage payments, etc. are estimates and should be used for comparison only. Ark-La-Tex Financial Services, LLC – NMLS#2143 does not guarantee any of the information obtained by any calculator.
What makes it work for you?
- Rate/term refinance to lower your rate or change your term
- Cash-out refinance to access home equity
- VA IRRRL, FHA Streamline, and USDA Streamlined-Assist
- Remove FHA mortgage insurance by refinancing into conventional
- Access home equity to manage existing debt
- Break-even analysis before you commit
A good fit if you…
- Have a rate meaningfully above current market rates
- Are in an FHA loan and have reached 20% equity
- Need to access home equity for renovations, paying off debt, or other financial goals
- Want to shorten your term and pay the home off faster
Probably not the right fit if you...
- Plan to move before the break-even point
- Have a very low first-mortgage rate and only need cash (consider a HELOC)
- Are mid-way through a short remaining term — restarting at 30 years may cost more overall
Additional options to think about
Compare with other programs
FAQ
Short, honest answers. Your loan officer can go deeper on any of these.
When is refinancing worth it?
A useful test: you plan to keep the home past the break-even point, and the total cost picture (not just the payment) improves. Rate drops of 0.5–1% often clear that bar, but term and closing costs matter as much as rate.
What does a refinance cost?
Typically 2–5% of the loan amount in closing costs. Some lenders offer low- or no-closing-cost options in exchange for a slightly higher rate — the calculator lets you model both.
Does refinancing restart my loan?
It replaces your loan with a new one at the term you choose. Matching your remaining term (say, refinancing 24 remaining years into a 20-year loan) avoids stretching interest back out.
What about cash-out refinancing?
You borrow above your current balance and take the difference in cash, commonly for renovations or debt consolidation. It raises the new payment and total interest — enter the amount to see the effect.
Can I refinance from FHA into a conventional loan?
Yes. Once you reach 20% equity, refinancing from FHA to conventional removes the monthly mortgage insurance premium. Whether it’s worth it depends on the rate difference and how long you plan to stay.
HOW IT WORKS
Four steps from here to keys
Talk through your current loan
A 15-minute conversation about where you are and where you want to go.
Get pre-approved
You provide supporting documents like income statements, W-2s, and bank statements. Most of it can be uploaded in minutes.
Shop with confidence
We handle the appraisal and the paperwork sellers worry about.
Sign & Close
Sign, fund, and get the keys. We stay on the file until the end.
Talk through your current loan
A 15-minute conversation. No obligation. Real answers from a loan officer who answers the phone.