A refinance loan allows you to replace your existing mortgage with a new home loan—ideally one structured with more favorable terms. When you refinance, your new lender pays off your current mortgage balance, allowing you to establish a new loan term, monthly payment amount, or financing structure on the same property.
Homeowners frequently choose to refinance when market conditions create opportunities to reduce overall monthly housing costs. Additionally, refinancing allows you to tap into your accumulated home equity. If your home has increased in value or you have paid down your balance over time, a cash-out refinance allows you to convert equity into funds for home improvements, debt consolidation, or other major financial priorities.
Refinancing your mortgage may be a strategic financial move if your home value has appreciated or if your financing goals have evolved. Through a refinance with Fairway, you can:
How much does it cost to refinance a mortgage?
Refinancing costs depend on your loan type and property details. Many refinance programs require a new property appraisal, which typically ranges from $400 to $750. There are also standard closing costs involved. Depending on the loan structure, closing costs can be paid out-of-pocket at closing or financed directly into your new loan balance. Your Fairway mortgage advisor can provide a full breakdown of estimated closing costs for your specific loan options.
When should I refinance my mortgage?
You can refinance whenever doing so aligns with your financial goals, provided you have at least a six-month history of on-time mortgage payments on your existing loan. Common milestones for refinancing include favorable market shifts, building 20% or more equity, or needing to tap equity for major life events.
Can I refinance if I have an FHA loan?
Yes! FHA homeowners have two primary refinance paths:
How soon can I refinance an FHA loan into a Conventional loan?
Lenders require a minimum six-month history of consecutive, on-time monthly payments before refinancing. However, waiting until you reach 20% equity is often advantageous to maximize savings by eliminating mortgage insurance requirements entirely.
Is a home equity loan the same as a refinance?
While both leverage your home equity, they function differently:
Fairway is an equal housing lender. Financial qualifications, minimum credit scores, equity requirements, and loan limits apply for all refinance products. Fairway is not affiliated with or acting on behalf of HUD, FHA, VA, USDA, or any government agency.
