Refinancing: Compare the Costs With Your Goal
General information only. This page is not a loan offer, application, approval, or personalized financial advice. Rates, costs, eligibility, and program rules depend on the provider, date, borrower, property, and loan terms.
Start with the goal
A refinance replaces an existing mortgage with a new loan. Define the goal first, such as changing the term, payment structure, or other loan features.
A lower monthly payment can result from a longer term and does not by itself establish that the new loan costs less overall.
Review the full cost
Compare the new Loan Estimate with your current loan documents. Review closing costs, the new term, interest rate, APR, payment, cash required, and any prepayment penalty on the existing or proposed loan.
Consider how long you expect to keep the loan and whether the expected benefit justifies the upfront and long-term cost.
Primary sources
CFPB Should I Refinance? worksheet ↗