Refinancing is not one product and it is not always the answer. Sometimes the right move is a second lien instead of touching your first mortgage. Sometimes it is a streamline with almost no paperwork. Sometimes it is doing nothing.
The wrong move here is expensive, because you may be giving up a rate you cannot get back. Here is what each option actually does.
These are not interchangeable. The right one depends on your current rate, how much you need and what you need it for.
Think hard before a cash-out refinance. Replacing a 3% first mortgage to access equity can cost far more over time than a second lien at a higher rate on a smaller balance. This is the single most common mistake I see homeowners make right now.
Check the streamline first. Limited documentation, often no appraisal, and it is usually the cheapest path to a lower payment if rates have moved.
A HELOC lets you draw what you need rather than refinancing the whole balance. Renovation, tuition, consolidating higher-rate debt.
A reverse mortgage removes the monthly payment. It is not right for everyone and it reduces what passes to heirs, but for the right situation it solves a problem nothing else does.
Do not take it on faith. The rate is one line on a page that has thirty. Send me the Loan Estimate.
Before you sign anything on a refinance:
Why did my Loan Estimate change · Are my closing costs too high · Loan Estimate vs Closing Disclosure · Section A explained
Tell me your current rate and balance and what you are trying to accomplish. That is enough for me to tell you whether refinancing helps you or costs you, and which of these six is the right tool. If the honest answer is to leave your mortgage alone, I will say so. Want your rate watched instead? Join Rate Watch and I will tell you when it makes sense.
Program details are general, vary by program, property and state, and are subject to change without notice. This is not a commitment to lend and not all applicants will qualify.
