Should you refinance? Start with the number.

Closing costs usually run between 2 and 5 percent of the loan amount and cover lender fees, an appraisal when one is required, title work and recording. Refinances often cost less than purchases because there is no transfer tax in most cases. Some borrowers choose a slightly higher rate in exchange for lender credits that cover part or all of the costs. We show you both versions before you decide.

When the monthly savings pay back the closing costs comfortably before you plan to move, when you want the security of a fixed rate, or when a shorter term saves you real interest. Use the calculator above for the break-even, then let a pro confirm it against your actual quotes. Refinance break-even: a worked example shows the arithmetic on a real loan.

Conventional refinances generally start at 620, with the best pricing from about 740. FHA options are often available from 580. VA does not set a minimum, though most lenders look for 580 to 620. Streamline programs for existing FHA and VA loans are more forgiving because they rely on your payment history.

A rate-and-term refinance on a conventional loan can go to 95 or even 97 percent of the value, so as little as 3 to 5 percent equity. Cash-out generally requires keeping 20 percent equity on conventional and FHA loans. FHA Streamline and VA IRRRL programs usually need no appraisal at all.

Streamline refinances on existing FHA and VA loans need the least paperwork and usually no appraisal, so they are the quickest to close. A full conventional refinance with an appraisal commonly takes 30 to 45 days, and the timeline depends on the appraisal, title, underwriting and how quickly documents come in. When the refinance is secured by your principal residence, federal law also gives you a three-business-day right to cancel after signing, and the funds are released once it passes; it does not apply to purchase loans or to a refinance of a second home or rental, and a refinance with your current lender is covered only as to new money advanced.

Expect a small, temporary dip of a few points from the hard inquiry and the new account. Scoring models treat multiple mortgage inquiries within a short shopping window as one event, so comparing lenders does not stack up damage. Getting a quote from us does not involve a hard pull at all.

For a rate-and-term refinance there is generally no waiting period, though individual lenders may add one. Cash-out programs usually require six to twelve months of ownership. FHA Streamline and VA IRRRL require 210 days and six on-time payments on the current loan.

Not always. FHA Streamline and VA IRRRL loans rarely require one. Conventional refinances sometimes qualify for an appraisal waiver based on automated valuation, and your pro will know early whether yours does. When an appraisal is needed it adds a week or two and a few hundred dollars.

For a full refinance: government ID, your last 30 days of pay stubs, two years of W-2s or tax returns, recent bank statements and your current mortgage statement. Self-employed borrowers add business returns and a year-to-date profit and loss. Streamlines need far less, often just ID and the mortgage statement.

Yes. Most programs use two years of personal and business tax returns to average your income. If write-offs make your taxable income look low, bank-statement programs can qualify you on 12 to 24 months of deposits instead. Your pro will tell you which route prices better.