Lower your monthly payment with a rate-and-term refinance.

When it comes to paying monthly bills, we would all prefer lower payments. If you qualify to refinance into a loan with a lower rate or better terms, you may be able to reduce your payments and/or pay down your principal faster. Depending on your current loan, you could save hundreds of dollars each month — and maybe thousands over the remainder of your mortgage.

*Note: Total finance charges may be higher over the life of the loan. View Loan Examples >>

When is the best time to refinance? And should you? Generally speaking, the best time to refinance your mortgage is when your current financial picture is a lot better than it was when you signed your original contract. This may mean you have some combination of higher income, less debt, a better debt-to-income ratio, and a better credit score. All of these factors could result in you qualifying for a lower interest rate than you did originally, and possibly even a more advantageous loan type.

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Conventional

With a Conventional refinance loan, borrowers can lower their current mortgage payment, change terms, or convert from an adjustable-rate mortgage (ARM) to a fixed-rate. Conventional loans are typically less expensive than FHA loans, but they are harder to qualify for. They often require a minimum credit score of 620 and a lower debt-to-income ratio. Learn more.

Should I refinance?

What can I expect during the refinance process?

Several factors are taken into consideration when you refinance your home, including your credit score, your debt-to-income ratio, and your loan-to-value (LTV) ratio. Your Embrace specialist will explain the significance of each and help you find the mortgage that’s right for you based on your current situation. And, if your situation has improved since you originally got your mortgage, you could benefit greatly from a rate-and-term refinance.

With our streamlined process, you can get a new mortgage in three simple steps: apply, get approved, close. Your dedicated Embrace specialist will let you know what documents are needed, have your home appraised, and walk you through the entire process from application to closing.

Call 800-333-3004 to speak with an Embrace loan officer today. Or fill out our online application and have one of our specialists contact you. There is no obligation. To learn more, get in touch today.

Frequently asked questions

How are rates calculated?

Rates are complicated and can be tricky to understand. Simply CALL US and we’ll help you compare your rate quotes. We’re happy to take you through estimates line by line — ensuring you know what every item means to you and your bottom line. Comparing mortgage rates can be confusing because there are so many factors — from taxes to title insurance — that contribute to calculating your mortgage payment and closing costs. No one is expected to understand it all from the beginning, but we’ll make sure it all makes perfect sense to you in the end.
Private mortgage insurance (PMI) is an insurance policy that protects your lender in case you default on your mortgage. You may be required to purchase it, especially if you plan to make a down payment of less than 20% of your home's purchase price, which means you have a loan-to-value ratio (LTV) greater than 80%. PMI is purchased through a third-party insurance company and paid via your monthly mortgage payments. How much it costs depends on several factors, but once your LTV is below 80%, you can refinance your mortgage to get rid of the PMI.
Loan-to-value (LTV) tells you how much equity you have in your home relative to how much you owe on it and what the house is worth. LTV is important to know when refinancing because it can affect your interest rate and whether or not you’ll need Private Mortgage Insurance (PMI).
There are many great reasons for refinancing, including:
  • You’d like to lower your interest rate or monthly mortgage payments
  • You need cash, fast
  • You’d like to consolidate debt
  • You’re looking to shorten your payback term
  • You want to switch from a variable-rate to a fixed-rate mortgage to create regular, predictable payments
  • You’d like to get a variable-rate mortgage with better terms
High interest rates bring higher monthly payments and increase the overall interest you’ll pay over the life of your loan. A low interest rate saves you money in both the short and long term. Sometimes a bigger down payment can help you get a lower interest rate. Keep in mind that the money you pay in interest doesn’t ever go toward paying off the principal, so it’s smart to get the lowest interest rate possible and then pay off your house as quickly as you can.

"Being a first time home buyer, Christine was there to help with every step and extremely helpful." - Eileen, NH

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30-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 30-year fixed-rate cash out refinance loan at 3.250% with a 70% loan-to-value (LTV) is $979.21 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.520%. This assumes a FICO score of at least 690. Payment does not include taxes and insurance premiums, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and are subject to change without notice. Rates offered may be subject to pricing add-ons related to property type, loan amount, LTV, credit score, and other variables. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Stated rate may change or not be available at the time of loan commitment or lock-in.

30-Year Fixed-Rate Purchase Mortgage Example:
The payment on a $225,000 30-year fixed-rate purchase loan at 3.125% with a 70% loan-to-value (LTV) is $963.84 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.390%. This assumes a FICO score of at least 710. Payment does not include taxes and insurance premiums, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and are subject to change without notice. Rates offered may be subject to pricing add-ons related to property type, loan amount, LTV, credit score, and other variables. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Stated rate may change or not be available at the time of loan commitment or lock-in.