Refinance with the full cost in view
A refinance replaces your existing mortgage with a new loan. For homeowners in Arizona and California, the first question is what the change needs to accomplish.
Name the reason for refinancing
You may want a different payment, a shorter repayment period, or a change from an adjustable rate to a fixed rate. Each goal calls for a different comparison. A lower payment alone does not show whether the new loan costs less.
Start your conversation with your current mortgage statement, the years left on the loan, and how long you expect to keep the home. Tell Eric what you want to change and which parts of your current loan you want to preserve.
Compare costs with the benefit
Ask for the new loan’s closing costs, payment, and term. Check whether you will pay costs at closing or add them to the loan balance. Financing those costs means borrowing more.
If you are seeking monthly savings, ask how long those savings would take to recover the refinancing costs. Consider whether you expect to keep the loan that long. Also compare total interest and the balance you would owe at the same future date under each option.
Bring a before-and-after checklist
Have your current balance, interest rate, payment breakdown, and payoff information available. List any second mortgage or home-equity line, and flag changes to your income, employment, or credit since your last application.
Ask Eric to walk through the estimates side by side. Write down what changes, what stays the same, and which costs are estimates. Request secure upload instructions before sharing financial documents.
Common questions
Will refinancing lower my total interest?
Not necessarily. Restarting repayment over a longer term can increase total interest even if the monthly payment falls. Compare the new term with the time remaining on your existing loan.
Is taking cash out the same decision as changing my rate?
No. A cash-out refinance also involves borrowing against your equity. Discuss how much debt you would add, how you would use the funds, and whether another approach better fits your goal.
Keep comparing
Home equity: explore the related guide
Consumer resources
Consumer Financial Protection Bureau: should I refinance? (PDF)
Educational information, not a loan offer or commitment to lend. Availability and eligibility depend on the lender, program, property, and borrower. Ask Eric about current requirements. Read the mortgage disclosures.
Put your questions on the table.
Talk with Eric about your plans, your timeline, and what you want to understand.