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Ask us what refinance rate we can offer you!

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

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Overview Compare Rates
& Fees FAQs About Get Started
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Overview

With a home refinance, you pay off your existing mortgage and replace it with a new mortgage that has a better rate or better terms. You typically want to refinance your mortgage when current interest rates are significantly lower than the rate on your current home loan.

Use our mortgage refinance calculator to estimate how much you might save by lowering your interest rate, changing your loan term, and more. By refinancing, the total finance charges you pay may be higher over the life of the loan.

Lower your interest rate

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Lower your monthly payment

Save money on interest

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How much can you save?

Find out how much you might save by refinancing your home to a lower rate. By refinancing, the total finance charges you pay may be higher over the life of the loan. Change the default values to personalize your savings estimate!

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This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

Refinancing might save you
$ a month

Ask us what refinance rate we can offer you

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

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Choose the mortgage refinance that’s right for you!

At Freedom Mortgage, we offer refinancing on conventional home loans, which are the mortgages many homeowners have across the United States. We also offer refinancing for VA, FHA, and USDA loans.

Your refinancing choices depend on the mortgage you have and the mortgage you want. You can refinance any type of mortgage with a conventional loan. Streamline refinances are only available for VA, FHA, and USDA loans. Our loan comparison can help you decide.

Conventional Refinances

  • All loans are eligible
  • Application requires more paperwork
  • Mortgage insurance required with home equity less than 20%
  • Closing takes more than 30 days

VA IRRRL (Streamline) Refinances

  • Only VA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance not required
  • Closing takes less than 30 days
Learn more

FHA Streamline Refinances

  • Only FHA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance required
  • Closing takes less than 30 days
Learn more

USDA Streamline Refinances

  • Only USDA loans are eligible
  • Application requires less paperwork
  • Mortgage insurance required
  • Closing takes less than 30 days
Learn more

Looking for more detail?

Our full loan comparison table can help you decide.

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Mortgage refinance fees and requirements

Conventional mortgage refinances are sometimes called “full document” refinances because you need to complete a new application, provide a new set of income and financial documents, and pay a new set of closing costs. You will also need to meet credit, income, and financial requirements to get your refinance approved. Here’s what you need to know about how mortgage refinance works.

New application and documentation

You will need to complete a new application and provide income and financial documents like current pay statements and tax returns.

New credit check

We will probably check your credit score before we approve your refinance. Your credit score can affect the interest rate we may offer too. Learn more

New home appraisal

You may need a new home appraisal to estimate the current fair market value of your house. A home appraisal typically costs $300 to $400.Learn more

Private mortgage insurance

With a conventional mortgage refinance, you need at least 20% equity in your home or you will need to pay for private mortgage insurance. According to Freddie Mac, homeowners can expect mortgage insurance to cost between $30 and $70 per month for every $100,000 they borrow.Learn more

Closing costs

Closing costs for mortgage refinancing can include lender fees, discount points, and more. You may need to pay property taxes and homeowners insurance premiums too. According to Freddie Mac, the average closing costs for refinancing a mortgage are approximately $5,000.Learn more

Loan disclosures and closing

Once you submit your application, you will need to review and sign loan disclosures. You’ll also need to attend the closing of your new mortgage.Learn more

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Frequently Asked Questions

When to refinance

With a home refinance, you pay off your existing mortgage and replace it with a new mortgage that has a better rate or better terms. You may refinance to save money on interest or enjoy other benefits.

Homeowners typically refinance their mortgages when current interest rates are significantly lower than the rate on their current loan. That’s because you want refinancing to make sense after you pay the closing costs which are often required. Also think about refinancing to …

  • Lower monthly mortgage payments

    Refinancing a mortgage may help to reduce the size of your loan payments each month. You can use the savings to invest in college and retirement accounts, to pay bills, to pay down other debts, and more. By refinancing a home loan, the total finance charges may be higher over the life of the loan.

  • Get cash from home equity

    Refinancing a home mortgage may also help you get cash from your home’s equity. This is called a "cash out refinance." You pay off your current mortgage balance and replace it with a new mortgage for a higher principal balance, and get the difference as cash at closing. You may use this money to do things like pay down higher interest debts or invest in home improvements.

  • Shorten the life of the home loan

    When you pay off a mortgage sooner than the terms require, you might save money on interest. That’s because you are paying back the interest over a shorter period of time. Some homeowners refinance mortgages to shorten the life of their loans. Keep in mind that it is often not necessary to refinance your home to pay off a mortgage faster. You can simply make extra payments.

  • Make mortgage payments more predictable

    If you have an adjustable rate mortgage, you can refinance your home loan to a fixed rate mortgage and make your monthly payments more predictable. With an adjustable rate mortgage, your interest rate and monthly payments can change every year. With a fixed rate mortgage, your interest rate and monthly payments stay the same.

  • Remove mortgage insurance

    Some homeowners refinance to stop paying mortgage insurance. If you have an FHA loan, refinancing to a conventional loan might help you stop paying FHA mortgage insurance premiums. You don’t always need to refinance your mortgage to get rid of mortgage insurance. If you have a conventional mortgage, you should be able to stop paying for private mortgage insurance once your home equity reaches 20%.

How to refinance

It’s important to decide if refinancing your mortgage makes financial sense. Many homeowners do this by calculating a “break even” point, which is the moment when the costs of a home refinance have been paid for by the money it saves.

For example, if you are thinking about a mortgage refinance which will save you $100 a month and has $1,500 in closing costs, it will take you 15 months to “break even” and begin to save money. This is the reason real estate professionals often recommend you do not refinance your mortgage when you are planning to sell your house soon. That’s because the savings from a refinance might be minimal if you only live in the house a short time before you sell. You can use our mortgage refinance calculator to help you estimate your potential savings.

Also look at the total amount of money you might pay in interest. By refinancing, the total finance charges you pay may be higher over the life of the loan. This may happen when you extend the term of your loan. For example, if you have 20 years left on your mortgage, and you refinance your home with a new 30 year mortgage, you may pay more money in interest charges even if you lower your interest rate.

If you are a current Freedom Mortgage customer, we can often refinance your home to a lower rate while keeping your loan term the same. Ask us if we can do this for you!

There are other important steps to take when you want to refinance your mortgage. These steps include:

  • Checking your credit score and finances

    We use your credit score to help us decide whether you qualify for a home loan and the interest rate we can offer to you. So it’s a good idea to review your credit score and credit report to make sure they are accurate. Your income, how much you owe on loans besides your mortgage, and your payment history can also affect your eligibility for a refinance. A better credit score might get you a better interest rate too!

  • Estimating your home’s value

    Your home’s current fair market value can influence whether you qualify for a refinance. That’s because we use your house’s value to calculate a loan-to-value ratio. Loan-to-value ratio is a percentage we get by dividing the size of your mortgage by the value of your house.

    For example if your home is worth $200,000 and you would like to refinance it with a $150,000 mortgage, then the loan-to-value ratio is 75%. (Calculation: $150,000 ÷ $200,000 = 0.75 or 75%.)

    Mortgage refinance loans have maximum loan-to-value ratios and you have to stay at or below these maximums ratios to qualify for a loan. Generally, the lower your loan-to-value ratio, the greater the chances your refinance loan will be approved.

  • Ask us what interest rate we can offer you!

    The rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower – or higher – than the rate you see advertised by other lenders.

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The Freedom Mortgage Difference

Freedom Mortgage has grown to be a top 10 mortgage lender in the US. With 30 years of experience helping customers achieve and maintain the dream of homeownership, we are proud today to be the nation’s #1 VA and FHA lender.

Beyond originating loans, we also service mortgages for 1.25+ million customers. Our outstanding service includes our Eagle Eye Pledge, to alert customers to opportunities for lower rates and monthly payments. We are dedicated to meeting our customer’s needs for the life of their loan.