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Refinance on terms that actually make sense for you
Lower your rate, shorten your term, pull equity, or finally drop mortgage insurance. As a broker, we shop many lenders and run the break-even math before you spend a dollar on closing costs.
Refinancing replaces your current mortgage with a new one, usually to cut your rate or payment, change your term, pull cash from equity, or remove mortgage insurance. The right move depends on your rate, how long you'll stay, and whether the monthly savings recoup the closing costs.
Programs we broker
The options under refinance — and the right fit for each.
Rate-and-Term Refinance
Replace your current mortgage to lower the rate, shorten the term, or both.
A rate-and-term refi pays off your existing loan with a new one — same balance, different (better) terms. No cash is taken out. The goal is a lower interest rate, a shorter term that builds equity faster, switching from an ARM to a fixed payment, or dropping mortgage insurance in the process.
We start with break-even math. If your total closing costs divided by the monthly savings lands in a window you'll comfortably stay in the home past, the refi pencils. If it doesn't, I'll tell you to wait. Either way you get the honest answer before paying for an appraisal.
- Locking in a fixed rate when an ARM is about to adjust
- Going from a 30-year to a 20- or 15-year to pay off sooner
- Catching a meaningful drop in market rates
- Removing PMI by hitting the equity threshold
Conventional Cash-Out Refinance
Replace your loan with a larger one and pocket the equity difference.
A conventional cash-out refi takes your existing mortgage, pays it off with a bigger new loan, and hands you the difference in cash at closing. The money has no use restriction — debt consolidation, a remodel, tuition, a down payment on a second property, business capital, whatever fits.
On a primary residence, the new loan is typically capped around 80% of the appraised value, so you'll generally leave at least 20% equity in the home. Investment properties usually cap lower (around 75% LTV on a single-unit, less on 2-4 units). Because you're trading shorter-term debt for a 30-year mortgage, we walk through total-interest cost, not just the lower monthly payment.
- Consolidating high-rate credit cards or personal loans
- Funding a renovation without a separate HELOC
- Pulling capital for an investment property down payment
- Covering tuition, medical bills, or a business need
FHA Cash-Out Refinance
Tap home equity on an FHA loan with more forgiving credit and DTI rules.
The FHA cash-out option lets you take equity out as cash and roll the result into a new FHA mortgage. It tends to be more forgiving on credit score and debt-to-income than the conventional version, which makes it the right call for borrowers who don't qualify for an 80% conventional cash-out.
FHA caps the new loan at 80% of the appraised value, the same as conventional, but typically requires you to have owned and occupied the home for at least 12 months. The tradeoff is FHA mortgage insurance — an upfront premium plus monthly MIP for the life of the loan in most cases. We compare it against conventional side by side so the tradeoff is clear before you decide.
- FHA borrowers with credit or DTI that won't fit conventional cash-out
- Pulling equity to consolidate debt or fund repairs
- Borrowers without 20%+ equity who still need cash
- Converting a non-FHA loan into an FHA cash-out when guidelines fit
FHA Streamline Refinance
Faster, lighter-doc rate refi for borrowers already in an FHA loan.
If you have an FHA loan, the Streamline is built to lower your rate without the heavy paperwork of a full refi. No new appraisal is required in most cases, income re-verification is reduced or waived, and the focus is simply on showing the new loan benefits you. It's the fastest, lowest-friction way to drop an FHA payment.
FHA requires a net tangible benefit. For a fixed-to-fixed refi, your combined interest rate plus annual MIP generally needs to drop by at least 0.5%. You also need a clean recent payment history on the existing FHA loan (typically no 30-day lates in the last six months). No cash out — this program is for rate and term only, and the new loan stays FHA.
- FHA borrower wanting a lower rate fast and cheap
- Switching an FHA ARM to a fixed rate
- Skipping a new appraisal in a flat or soft market
- Reducing the monthly payment with minimal documentation
VA IRRRL (VA Streamline)
Interest-rate reduction refi for veterans already in a VA loan.
The VA Interest Rate Reduction Refinance Loan — IRRRL, or VA Streamline — exists for one job: get an existing VA borrower into a lower rate with as little friction as possible. Most IRRRLs skip a new appraisal and full income re-verification, and the funding fee is reduced compared to a purchase or cash-out.
The VA enforces a 36-month recoupment rule: the refinance's closing costs (excluding items like the funding fee and escrows) need to be recouped through monthly savings within 36 months. You also need a clean recent payment history on the current VA loan. No cash out — IRRRL is rate-and-term only, and the new loan stays VA.
- Veteran lowering a VA rate with minimal paperwork
- Switching from a VA ARM to a VA fixed rate
- Cutting the monthly payment quickly and cheaply
- Refinancing without paying for a new appraisal
USDA Streamlined Assist Refinance
No-appraisal, no-credit-score refi for existing USDA Rural Development borrowers.
USDA's Streamlined Assist program is the rural-loan equivalent of the FHA Streamline and VA IRRRL. It's open to existing USDA Section 502 Guaranteed borrowers who want a lower payment. No new appraisal is required, no credit score or DTI recalculation in most cases, and no inspection — the focus is on payment reduction and a clean recent payment history.
To qualify, you generally need at least 12 months of on-time payments on the current USDA loan, and the refinance must lower your principal-and-interest payment by at least $50 per month. The new loan stays USDA, so the annual guarantee fee continues. It's the simplest path to a lower USDA payment when rates drop.
- Rural-area homeowner with an older USDA loan and a higher rate
- Borrower who doesn't have an appraisal-supporting comp
- Lowering payment without re-qualifying on income or credit
- USDA borrower whose income has changed but who still has a clean payment history
HECM-to-HECM Reverse Mortgage Refinance
Refinance an existing reverse mortgage into a new HECM with better terms or more proceeds.
A HECM-to-HECM refinance replaces an existing FHA Home Equity Conversion Mortgage with a new one. The usual reasons: home value has risen meaningfully since the original loan, rates have moved in your favor, or you'd like to add a co-borrowing spouse to the loan. The result can be more available principal, a lower rate, or extended protection for a non-borrowing spouse.
HUD requires that the refinance pass a five-times benefit test — the increase in your principal limit must be at least five times the closing costs — and that the new loan provide a bona fide advantage to you. There's also a seasoning requirement (generally at least 18 months from the original HECM closing). HUD-approved counseling is required, the same as on the original loan. Reverse mortgages aren't right for every situation, so we walk through the math honestly and only move forward if it actually helps you.
- Home value rose substantially since the original HECM closed
- Adding a younger spouse to the loan for survivor protection
- Switching from an adjustable HECM to a fixed-rate HECM
- Accessing more line-of-credit headroom after years of appreciation
Calculators for this loan
Refinance Analyzer
Break-even period, monthly savings, and lifetime interest impact.
VA IRRRL / FHA Streamline
VA IRRRL and FHA streamline savings, closing costs, and break-even.
Mortgage Payment & Amortization
Monthly payment, full amortization schedule, and interest totals.
Blended Rate
Effective blended rate across first, second, and piggyback loans.
What people ask before they apply
When does it actually make sense to refinance?
When the move pays for itself in a timeframe you'll be in the home. The simplest test is break-even: divide your total closing costs by your monthly savings to see how many months until you come out ahead. If you'll keep the loan well past that point, a refinance usually makes sense. Lowering your rate, shortening your term, removing mortgage insurance, or consolidating expensive debt can all be good reasons. We'll run the numbers with you before you commit to anything.
How is the break-even point calculated?
Take the total closing costs for the refinance and divide by the amount you'll save each month. For example, $4,000 in costs and $200 a month in savings is a 20-month break-even. After that point, the savings are yours. If you might sell or move before break-even, the refinance may cost more than it saves, even with a lower rate.
How much cash can I pull out with a cash-out refinance?
On most conventional cash-out refinances, lenders limit the new loan to roughly 80% of your home's appraised value, so you'll generally keep at least 20% equity in the property. Your actual limit depends on the loan program, your credit, and whether it's a primary residence or investment property. VA cash-out can go higher for eligible veterans. These figures move with program guidelines, so we'll verify the exact limit for your scenario.
What's the difference between an FHA Streamline and a VA IRRRL?
They serve the same purpose, a faster, lighter-paperwork rate reduction, but for different loans. The FHA Streamline is for existing FHA borrowers; the VA IRRRL (VA Streamline) is for existing VA borrowers. Both often skip a new appraisal and full income re-verification. FHA requires a net tangible benefit, typically a combined rate-plus-insurance drop of at least 0.5%. VA uses a 36-month recoupment rule on closing costs. Neither lets you take cash out.
How do I get rid of mortgage insurance?
It depends on your loan. On a conventional loan, PMI must automatically cancel at 78% of the home's original value, and you can request cancellation at 80%, often without refinancing at all. FHA mortgage insurance (MIP) usually stays for the life of the loan, so the common way to remove it is refinancing into a conventional loan once you have about 20% equity. We'll tell you which path fits your situation.
What does the VA IRRRL recoupment rule mean?
For a VA Streamline (IRRRL), the VA wants your closing costs to be recouped through your monthly savings within 36 months. In practice, you divide the recoupable closing costs by your monthly principal-and-interest savings, and that figure should be 36 months or less. Certain items like the VA funding fee, escrows, and prepaid amounts are excluded from the calculation. It's a guardrail to make sure the refinance genuinely benefits you.
Can I roll my closing costs into the new loan?
Often yes. Many borrowers finance the closing costs into the new loan balance or take a slightly higher rate in exchange for a lender credit that covers costs, so little or nothing is due out of pocket. The tradeoff is a larger balance or a marginally higher rate, which affects your break-even. We'll show you the out-of-pocket and rolled-in versions side by side so you can choose.
Why use a broker instead of going straight to a bank?
A bank can only offer its own products. As a brokerage, North Bay Capital shops many lenders to find the rate and program that fit your situation, then handles the paperwork and timeline for you. You also get a real person, Jesse and the team, who picks up the phone. For most refinances, having someone compare options on your behalf saves time and money.
Jesse Gonzalez, President & Founder
NMLS #278103 · CA DRE #01855372 · Last reviewed June 24, 2026
Not sure if a refinance pencils out? Let's run your numbers.
Before you pay for an appraisal or commit to anything, we'll calculate your break-even, compare loan options across multiple lenders, and tell you honestly whether refinancing makes sense right now. Call Jesse Gonzalez and the North Bay Capital team at 707-595-5393, or email jesse@northbaycap.com. We're based in Santa Rosa and licensed in California, Colorado, Florida, and Alabama.