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.
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 about our Conventional loans
If your credit isn’t in the best shape, but you want to save a little money, an FHA Streamline refinance might be the answer. FHA loans are guaranteed by the Federal Housing Administration (FHA) and are typically easier to qualify for than Conventional loans. Learn more about our FHA loans
If you’re current on your mortgage payments, with or without equity in your home, you could be eligible for a higher loan-to-value (LTV) refinance. You may want to consider this type of financing if you’re interested in lowering your monthly payments, reducing your interest rate, switching to a fixed-rate, or shortening your term. Learn more about our Higher LTV refinance
Embrace is honored to support the men and women who serve our country. With a VA refinance loan, you can lower your monthly payments, merge a Conventional loan with a VA-backed one, or get cash for home improvements. These loans are backed by the U.S. Federal Government and are easier to qualify for than Conventional mortgages. Learn more about our VA loans
Should you refinance?
Happy where you’re living, but wondering if refinancing your mortgage could save you money? If today’s interest rate is lower than the rate on your current mortgage, there’s a good chance it can. Whether you’re looking to consolidate debt, lower your monthly payments, or get cash out, our Refinance Calculator can help you determine how much money you’ll save and if refinancing makes financial sense.
Plug your current mortgage information into our Refinance Calculator. You can compare the total interest paid over the life of your loan — using your current interest rate versus a new lower interest rate. The calculator will also show your monthly savings and how long it will take to break even. Try out different numbers and scenarios to learn how a refinance might benefit you.
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
What is PMI and do I need it?
How are rates calculated?
What is the loan-to-value (LTV) ratio? Why do I need to know that?
How do interest rates affect my mortgage?
When is the right time to refinance?
- 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
30-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 30-year fixed-rate refinance loan at 2.875% with a 70% loan-to-value (LTV) is $933.51 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.13%. This assumes a FICO score of at least 701. 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.
15-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 15-year fixed-rate cash-out loan at 2.625% with a 70% loan-to-value (LTV) is $1513.55 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.070%. This assumes a FICO score of at least 701. 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.