Mike Prenesti | The Mortgage Jedi

Mortgage Refinance Guide

Refinancing can save you real money. It can also cost you money if the timing is wrong. Here is how to tell the difference before you commit.

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When a refinance actually helps

A refinance makes sense when it lowers your payment, shortens your term, or gets you cash you need at a fair cost.

The real test is simple. How long until the savings pay back the cost of the refinance? If you will stay past that point, it is usually worth it.

Rate and term refinance

This swaps your current loan for a new one with a better rate or a shorter term. No cash comes out. The goal is a lower payment or faster payoff.

Cash out refinance

This lets you tap your equity for renovations, debt payoff, or investing. You get a new first mortgage and money in hand.

It can be powerful. It can also be a trap if you are just moving debt around. We run the numbers so it actually moves you forward.

Streamline and investor options

  • FHA streamline. A simpler refinance for existing FHA loans.
  • VA IRRRL. The VA streamline for existing VA loans. Low friction, low cost.
  • DSCR refinance. For investors, we can refinance based on the property rental income.

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