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Refinance Calculator: See Your Real Break-Even & Lifetime Savings in 2026
Our refinance calculator shows what most lender ads leave out — the real break-even month, the reset of your amortization, and how much lifetime interest you actually save (or lose) after closing costs. Run rate-and-term, FHA Streamline, VA IRRRL, and cash-out scenarios side by side in seconds. Educational only — not a rate quote, lock, offer, or commitment to lend. Your Loan Estimate controls.
A refinance calculator compares your current mortgage against a proposed new loan, estimating the change in monthly payment, total interest, and the break-even point where accumulated savings exceed closing costs. Use it to test scenarios before applying. Results are illustrative estimates and are not a quote, lock, or commitment to lend.
- ✓Break-even months = total closing costs ÷ monthly payment savings. Plan to keep the loan longer than break-even before you refinance.
- ✓A lower rate on a fresh 30-year term can still raise total lifetime interest — always compare interest remaining, not just monthly payment.
- ✓Refinance closing costs typically run 2–4% of the new loan amount (Freddie Mac 2024 Cost of Refinancing report).
- ✓FHA Streamline and VA IRRRL skip the appraisal and full income re-verification on most files, so they usually close faster and cheaper.
- ✓Not a rate quote, lock, offer, or commitment to lend. Illustrative figures only — your Loan Estimate controls.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Run your real refinance numbers with a Loan Officer
A Simply Approved Mortgages Loan Officer will pull today's live rate, run the full break-even and lifetime-interest math on your file, and email you a written Loan Estimate under TRID. A credit review is part of the approval process and is disclosed before it happens. Educational only until you receive the Loan Estimate.
Not a loan application, rate lock, or commitment to lend. Binding figures appear on your Loan Estimate.
Refinance Calculator
Refinance break-even & lifetime savings
Enter your current loan and a proposed rate to see monthly savings, the month you break even on closing costs, and whether the refinance actually reduces total interest paid. Educational only — not a quote, lock, offer, or commitment to lend.
Your current loan
Proposed refinance
Your results
Break-even = closing costs ÷ monthly payment savings. Lifetime interest assumes both loans are held to term; a refinance that lowers the payment but resets your amortization can add total interest.
Next steps
Emailing your Refinance break-even calculator scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Break-even is total estimated closing costs divided by the monthly payment change, using standard fixed-rate amortization for both loans.
It excludes escrow items, interest already paid on the existing loan, tax effects, and the cost of extending the loan term.
Results are illustrative estimates only and are not a quote, lock, offer, or commitment to lend. No rate, APR, or program approval is implied. Binding figures appear on your Loan Estimate. Eligibility, terms, and availability vary by borrower, property, lender, loan program, and state.
Run your scenario with a loan officer
Share your numbers and a Simply Approved Mortgages Loan Officer sends back an estimated payment, estimated cash to close, and the structures that fit your file. Educational only — not a quote, lock, offer, or commitment to lend.
What a refinance calculator actually needs to do in 2026
Most online refinance calculators show you one number — the new monthly payment — and stop. That is not enough to make a real decision. A useful refinance calculator has to answer three questions at the same time:
- What is my new payment after the refinance closes?
- How many months until the closing costs pay for themselves (the break-even)?
- Do I pay more or less total interest over my realistic holding period?
Why this matters to you: a lender ad can advertise a lower rate that saves you $180/month, but if the refinance costs $7,000 in closing costs and resets your 30-year clock, you may pay more lifetime interest even at the lower rate. The calculator below runs all three numbers so you don't have to trust anyone's marketing math — including ours.
Break-even math, explained slowly
The break-even is the single most important refinance number, and it is simple:
Break-even months = Total closing costs ÷ Monthly payment savings
Example: closing costs of $6,000 divided by monthly savings of $200 = 30 months. If you plan to sell, pay off, or refinance again inside 30 months, the refinance loses money. If you plan to keep it 5–10 years, it usually pays for itself several times over.
What break-even ignores: the reset of your amortization schedule. Every mortgage front-loads interest — in year one, most of your payment is interest. When you refinance into a fresh 30-year loan, you restart that interest-heavy period. That's why our calculator shows lifetime interest remaining for both loans, not just monthly payment. A 15-year or 20-year refinance often wins on lifetime interest even at a higher payment.
How to read the outputs of our refinance calculator
- New monthly P&I — principal and interest only. Add real estate taxes, homeowners insurance, HOA, and mortgage insurance (if any) to get your true PITI.
- Monthly savings — old P&I minus new P&I. Negative = payment went up (common on 30→15 refinances, and that can still be a great deal).
- Break-even months — how long you must keep the new loan for the savings to repay closing costs.
- Lifetime interest saved — total remaining interest under the current loan minus total interest under the new loan. This is the number your household should optimize for.
- Total lifetime cost — remaining P&I payments + closing costs. This is what most homeowners never see and where the real trade-offs live.
Rate-and-term vs cash-out vs Streamline vs IRRRL — which refinance are you actually running?
The refinance calculator on this page handles all four scenarios. Pick the one that fits your file:
- Rate-and-term refinance — replace your existing mortgage with a lower rate and/or different term. No cash out. This is the classic "am I saving money?" refinance and the one break-even math is built for.
- Cash-out refinance — new first mortgage larger than the payoff; the difference is wired to you at closing (after the 3-day right of rescission on primary residences, under TILA § 1635 / Regulation Z 12 CFR § 1026.23). Capped at 80% LTV on conventional and FHA one-unit primary; up to 90% on VA base loan (VA Circular 26-19-05).
- FHA Streamline refinance — FHA-to-FHA rate reduction. No appraisal required in most cases. Full income re-verification usually skipped. Requires a net tangible benefit (typically ≥ 0.5% rate reduction or a fixed-for-fixed benefit) per HUD 4000.1.
- VA IRRRL (Interest Rate Reduction Refinance Loan) — VA-to-VA rate reduction. No appraisal, no income re-verification on most files. 210 days from first payment and 6 payments made required. Funding fee 0.5%.
Why this matters: Streamline and IRRRL refinances have much lower closing costs — often $2,000–$4,000 vs. $5,000–$10,000 on a full rate-and-term — because the appraisal and full underwriting are skipped. That drops your break-even to well under a year on most files.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
When a refinance is worth it — a plain-English decision framework
- Rule 1 — Rate math. Historically, refinancing made sense at roughly 0.75%–1.00% rate improvement. In 2026, with closing costs sensitive to loan size, even a 0.375%–0.500% drop can work on larger balances where the fixed costs are spread over more principal.
- Rule 2 — Holding period. You must plan to keep the loan longer than break-even. If you might sell or refinance again inside 24 months, only pursue a no-cost or Streamline/IRRRL refinance.
- Rule 3 — Term discipline. Refinancing from a 30-year loan you've paid for 5 years into a fresh 30-year loan resets the clock. Consider a 25-year, 20-year, or 15-year to preserve or accelerate payoff.
- Rule 4 — Total interest, not payment. A refinance that lowers your payment by $150/mo but adds $40,000 of lifetime interest is not a "savings." Optimize for lifetime cost.
- Rule 5 — MI elimination. On conventional, refinancing to remove PMI at 80% LTV can be worth it even without a rate improvement. On FHA loans originated after June 3, 2013, MIP is life-of-loan — refinancing into conventional (with 20%+ equity) is often the only way to drop MI.
What refinance closing costs actually look like
Refinance closing costs are the total of lender, title, government, and prepaid items. They break down roughly like this:
- Lender charges — origination fee, credit report, and any discount points. At Simply Approved Mortgages, on eligible residential transactions we generally use a 1.5% lender-paid compensation structure — the lender pays our broker compensation under its lender-paid compensation plan, so you don't pay us a separate broker fee. It is shown on your Loan Estimate.
- Third-party charges you can shop for — title insurance (lender's policy), settlement/closing fee, survey (if required). Under TRID, the lender must give you a written provider list.
- Third-party charges you cannot shop for — appraisal (waived on Streamline/IRRRL), flood determination, credit supplements.
- Government charges — recording fees, state/local mortgage taxes, doc stamps (Florida). These are not negotiable.
- Prepaid items — per-diem interest to end of month, property tax and homeowners insurance escrow reserves. These get returned to you as principal reductions or refunds over time — they aren't really "cost."
Freddie Mac's 2024 Cost of Refinancing analysis pegs typical U.S. refinance closing costs at roughly 2–4% of the loan amount. LodeStar's state-by-state 2026 data (used elsewhere on this site) shows a similar range with heavy variation by state — see the state closing-cost pages linked in Related resources.
Rate-and-term refinance guidelines (educational — 2026)
The guideline table below is a snapshot of published agency rules as of 2026. Lender overlays vary. Use it to set expectations before your Loan Estimate arrives.
How our refinance calculator handles taxes, insurance, and PMI
The calculator on this page focuses on principal and interest because those are the numbers that change with a refinance. Property taxes and homeowners insurance are largely determined by your home and your state, not your lender — they show up in escrow but they are not "refinance savings." If you want your full PITI, add:
- Property taxes — from your latest county tax bill divided by 12.
- Homeowners insurance — annual premium divided by 12.
- HOA — monthly HOA/condo fee (not escrowed on most conventional loans).
- Mortgage insurance — conventional PMI drops off at 78% LTV automatically (12 CFR 1024.20 / HPA 1998). FHA MIP is life-of-loan on most loans originated after June 3, 2013 — refinancing to conventional is usually the only way to remove it.
Check where pricing sits before you decide
Review current rate context, then start a request so your own credit, income, and property details drive the numbers. Illustrative only — not a quote or commitment to lend.
Why we show lifetime interest, not just monthly payment
Every dollar of interest you pay is a dollar that is not going to retirement, education, or your kids. A lender ad that celebrates "$180/month savings" while quietly adding $47,000 of lifetime interest is not saving you money — it's shifting the cost onto your future self. Our refinance calculator surfaces that number so you can decide with your eyes open. If the lifetime interest number gets worse under the refinance, the refinance is a bad deal unless it solves a different problem (removing MI, consolidating high-APR debt, shortening the payoff).
How rates and market conditions affect your refinance in 2026
The Freddie Mac Primary Mortgage Market Survey (PMMS) publishes the weekly national average 30-year fixed rate. Federal Reserve Economic Data (FRED) publishes the same series (MORTGAGE30US) with monthly and yearly history. Rates change daily and are set by the secondary market (MBS), not by any single lender. The refinance calculator below lets you plug in today's live rate — pulled from our pricing engine lower on the page — and compare it to your current rate. Live-rate figures on this site are indicative and not a rate quote, lock, offer, or commitment to lend; your specific rate is on your Loan Estimate.
Federal borrower protections on any refinance
- TILA-RESPA / TRID — Loan Estimate within 3 business days of application; Closing Disclosure at least 3 business days before signing.
- 3-day right of rescission — owner-occupied primary residence only, TILA § 1635 / Reg Z 12 CFR § 1026.23. You can cancel a cash-out or rate-and-term for any reason inside 3 business days after signing. Investment and second-home refinances fund immediately.
- ECOA — no discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.
- GLBA / RFPA — your financial data is protected and shared only for origination and servicing.
- SCRA — active-duty servicemembers get rate caps and other protections on covered debt.
- HMDA — public data on lender pricing, denials, and demographic outcomes lets you sanity-check any lender's numbers against the market.
Simply Approved Mortgages LLC is NMLS# 2620881 and an Equal Housing Opportunity. We are not affiliated with HUD, VA, or USDA.
What most refinance calculators get wrong. They optimize for the biggest possible monthly savings number in the ad. The right optimization is lifetime interest at your realistic holding period. A 30-to-30 refinance that saves $200/mo but adds $40,000 of lifetime interest is a bad deal. A 30-to-20 refinance that raises the payment $150/mo but cuts $80,000 of lifetime interest is a great one.
Why our compensation is generally 1.5% lender-paid. One transparent structure on eligible residential transactions — the lender pays our broker compensation under its lender-paid compensation plan, so you don't pay us a separate broker fee. Our compensation is visible on the same Loan Estimate you're going to compare across lenders. That's the point. It is not a guarantee of savings or a lower rate. Fees vary by loan program, state, and other factors. Educational only — not a quote, lock, offer, or commitment to lend.
Key qualifying numbers
Refinance guideline highlights
The four numbers most borrowers ask about first. Full underwriting matrix and citations are further down the page.
Max LTV — Rate-and-Term
95–97%
Conventional up to 97% on 1-unit primary (Fannie Mae Selling Guide B2-1.3-02); FHA up to 97.75%; VA no LTV cap.
Minimum FICO
620 / 580
Conventional typically 620+; FHA 580+ (some lenders overlay to 620); VA no VA-imposed minimum, most lenders 580–620.
Max DTI
43–45% standard
Conventional standard 45% (up to 50% with AUS approval); FHA standard 43% (up to ~56.99% with compensating factors); VA uses residual income test.
Seasoning
6 months
Standard for conventional. FHA Streamline: 210 days + 6 payments. VA IRRRL: 210 days from first payment.
Rescission (primary)
3 business days
TILA § 1635 / Reg Z 12 CFR § 1026.23. Owner-occupied primary only.
Typical closing costs
2–4% of loan
Freddie Mac 2024 Cost of Refinancing analysis; LodeStar state-by-state data varies materially.
Qualifications & requirements
Refinance guidelines snapshot (educational) qualifications: what you actually need to qualify
| Requirement | Typical standard |
|---|---|
| Rate-and-Term Max LTV | 97% conventional (1-unit primary), 97.75% FHA, no VA cap on IRRRL |
| Cash-Out Max LTV | 80% conventional / FHA on 1-unit primary; up to 90% VA base loan |
| Minimum FICO | 620 conventional / 580 FHA / no VA minimum (lender overlays apply) |
| DTI | 45% standard conventional (up to 50% with AUS); 43% standard FHA (up to ~56.99% with AUS + factors); VA residual income test |
| Seasoning | 6 months conventional; 210 days + 6 payments FHA Streamline / VA IRRRL |
| Appraisal | Full appraisal on rate-and-term/cash-out; waived on most FHA Streamline and VA IRRRL |
| Rescission (owner-occupied) | 3 business days after signing (TILA § 1635 / Reg Z 1026.23) |
| Typical closing costs | 2–4% of loan amount (Freddie Mac 2024 Cost of Refinancing) |
Sources: Fannie Mae Selling Guide B2-1.3-02 & B2-1.3-03, HUD Handbook 4000.1, VA Lender's Handbook Ch. 6, CFPB TRID (12 CFR § 1026.19), Freddie Mac 2024 Cost of Refinancing. Guidelines subject to change; lender overlays may apply. Not a quote, lock, offer, or commitment to lend.
When a refinance is the right tool
Lower your monthly payment when rates have dropped materially below your current rate
Shorten your term (30 → 20 or 15) to save tens of thousands in lifetime interest
Remove conventional PMI once you reach 80% LTV without waiting for the automatic 78% drop
Refinance out of FHA MIP into a conventional loan once you have 20% equity
Convert an ARM to a fixed rate before the next reset
Consolidate a HELOC or second mortgage into a single fixed first-lien payment
Pull equity for renovations, debt consolidation, or education (cash-out scenario)
Refinance calculator — pros & cons of refinancing
Pros — Refinance calculator
- +Lower rate can drop your monthly payment and free up cash for savings, kids, or debt payoff
- +Shorter term saves substantial lifetime interest, often tens of thousands of dollars
- +Refinancing out of FHA MIP into conventional can save $100–$400/month depending on balance
- +ARM → fixed protects you from future rate resets
- +Standardized Loan Estimate + Closing Disclosure let you shop lenders apples-to-apples
- +Owner-occupied refinances carry a 3-day right of rescission — no pressure at the closing table
Cons / watch-outs — Refinance calculator
- −Closing costs of 2–4% of the loan amount come out of pocket or roll into the balance
- −A fresh 30-year term resets your amortization and can raise lifetime interest even at a lower rate
- −A hard credit inquiry costs a few points; multi-lender applications inside a 45-day window count as one FICO inquiry
- −FHA MIP is life-of-loan on most loans originated after 6/3/2013 — the only exit is refinancing out
- −Cash-out pricing is typically 0.25%–0.75% higher than rate-and-term on the same file
- −If you might sell inside 24 months, closing costs often outrun any monthly savings
See what your file actually qualifies for
Share a few details and a Simply Approved Mortgages Loan Officer reviews credit, income, and equity, then follows up with the structures that fit. Educational only until you receive a Loan Estimate.
Not a loan application, rate lock, or commitment to lend. Binding figures appear on your Loan Estimate.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Worked example
Worked example — a real refinance calculator run
Homeowner with a $325,000 remaining balance at 7.25% (5 years into a 30-year loan). Considers refinancing to 6.375% on a new 30-year loan with $6,500 in closing costs.
Inputs
- Current balance
- $325,000
- Current rate / remaining term
- 7.25% / 25 years remaining
- Current P&I
- ~$2,349/mo (from the original 30-year schedule)
- New rate / new term
- 6.375% / 30 years
- Closing costs (rolled in)
- $6,500
- New loan amount
- $331,500
Calculation
- 1New P&I (30-year @ 6.375%)~$2,069/mo
- 2Monthly payment savings~$280/mo
- 3Break-even months$6,500 ÷ $280 = ~23 months
- 4Lifetime interest — old loan (25 yrs remaining)~$379,700
- 5Lifetime interest — new loan (30 yrs)~$413,340
- 6Lifetime interest DIFFERENCE~+$33,640 MORE interest despite lower rate
This is the classic trap. The monthly ad-headline savings of $280 looks great, and the break-even at 23 months is fine if the household plans to keep the home 3+ years. But the reset to a fresh 30-year term costs about $33,600 in additional lifetime interest. The smarter move is often refinancing to a 20-year at 6.375% — payment lands around $2,438 (only $89 more than current), and lifetime interest drops to ~$260,000, saving roughly $120,000 versus the current loan. Illustrative figures — not a quote, lock, offer, or commitment to lend. Your Loan Estimate controls.
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
Refinance loan options
Which refinance loan option fits?
Six refinance paths — each with different LTV caps, appraisal rules, and pricing. Pick the one whose "why" matches your goal. Educational only — not a quote, lock, offer, or commitment to lend.
Rate-and-Term Refinance — the classic "lower my rate" refi
Choose this when your goal is a lower interest rate, a shorter term (30 → 20 → 15), or switching program types (ARM → fixed, FHA → conventional to shed MIP). No cash is disbursed to you at closing — the new loan just replaces the old one. Rate-and-term pricing is typically the lowest of any refi option because LTV caps are higher and risk to the investor is lower.
Best for
- ✓Rates have dropped since you closed your existing loan
- ✓You want to switch from an ARM to a fixed rate
- ✓You want out of FHA mortgage insurance and have ≥20% equity
- ✓You want to shorten your term and pay less interest over the life of the loan
Requirements & caps
- •LTV up to 97% conventional (Fannie HomeReady / Freddie Home Possible), 97.75% FHA, 100% VA IRRRL
- •Minimum FICO ~620 conventional / 580 FHA / no VA-imposed minimum (lender overlays apply)
- •DTI generally 45% standard conventional (up to 50% with AUS + factors), 43% standard FHA (up to ~56.99% with AUS + compensating factors)
- •Full appraisal typically required (Fannie Value Acceptance / Freddie ACE may waive on eligible files)
Source: Fannie Mae Selling Guide B2-1.3-03; Freddie Mac Guide 4301.4; HUD 4000.1 II.A.8.d. Guidelines subject to change; lender overlays may apply. Individual results vary.
Start My Approval →Today's rates
Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.Real rates — your scenario, not a guess
Today's rate options below refresh twice each business day from our wholesale pricing engine; run your own scenario in the pricing tool. National survey averages below give you market context — they're not Simply Approved's pricing.
Our live pricing engine
See your real rate — for your scenario, in our pricing tool
Pull live, scenario-specific pricing from our wholesale pricing engine. Your binding rate and APR are confirmed on your Loan Estimate after a quick file review.
See My Live Rate →Pricing snapshot
Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.Today's Mortgage Rate Options at a Glance
Four real options from today's wholesale pricing for one documented sample scenario per program — no form needed. Updated twice each business day, about 10 AM and 2 PM Eastern. Your own rate depends on your credit, down payment, property, state and lock date.
National market context
Freddie Mac PMMS — weekly U.S. averages
Loading latest PMMS averages…
PMMS figures shown above are Freddie Mac's national survey averages, published weekly by Freddie Mac (PMMS_history.csv) — they are not Simply Approved Mortgages' rates, not a quote, not a lock, and not an offer or commitment to lend. Your actual rate, APR, and payment depend on credit profile, loan program, occupancy, LTV, DTI, property type, lock period, and current market pricing at the time of lock. Your binding figures appear on your Loan Estimate. Simply Approved Mortgages LLC · NMLS# 2620881 · Equal Housing Opportunity.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
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15-Yr Fixed · national avg
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2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Break-even is king
Break-even months = closing costs ÷ monthly savings. Refinance only if you'll keep the loan longer than break-even.
Watch the reset
Refinancing a 5-year-old mortgage into a fresh 30-year term can raise total lifetime interest even at a lower rate. Compare terms, not just rates.
Streamline & IRRRL
FHA Streamline and VA IRRRL skip appraisals and full income re-verification, so closing costs are much lower and break-even is usually months, not years.
1.5% lender-paid compensation
On eligible residential transactions Simply Approved Mortgages generally uses a 1.5% lender-paid compensation structure — the lender pays our broker compensation, so you don't pay us a separate broker fee. Shown on your Loan Estimate. Not a quote or commitment to lend.
Document Checklist for Refinance
Gathering these documents up front helps your Simply Approved Mortgages Loan Officer issue a stronger pre-approval and move Refinance to Clear-to-Close faster. Actual items required vary by scenario — your loan officer will confirm the final list.
Only the income documents that apply to you are shown. Switch tabs if you have multiple income sources — your loan officer will confirm which apply.
W-2 / Employed Income
- ✓Most recent 30 days of paystubs (all borrowers, all jobs)
- ✓W-2s for the last 2 years (all employers)
- ✓Two-year employment history with employer names, addresses, and dates
- ✓Verification of Employment — written (WVOE) or electronic (EVOE through a third-party payroll service); your loan officer orders it with your signed authorization
- ✓Employment reverification within 10 days before closing — verbal or electronic, required on every file
- ✓Bonus / commission / overtime: 2-year history if used to qualify
- ✓Recent job change: offer letter and first paystub after start date
- ✓Retirees / fixed income: Social Security award letter, pension statements, 1099-R
Assets & Reserves
- ✓Most recent 2 months of bank statements (all pages)
- ✓Most recent quarterly statement for retirement / brokerage / 401(k)
- ✓Gift funds: signed gift letter + donor bank statement + transfer proof
- ✓Large deposit letters of explanation with source documentation
Identity & Residency
- ✓Government-issued photo ID (driver's license or passport)
- ✓Social Security card or ITIN letter
- ✓Two years of residency history with addresses
Credit & Liabilities
- ✓Written credit report authorization
- ✓Letter of explanation for any late payments, collections, or inquiries
- ✓Bankruptcy discharge papers or foreclosure documentation (if applicable)
- ✓Child support / alimony order (if paying or receiving)
- ✓Divorce decree / separation agreement (only if applicable)
Property & Existing Loan
- ✓Most recent mortgage statement (all liens on the property)
- ✓Current homeowners insurance declarations page
- ✓Recent property tax bill
- ✓HOA statement and payoff (if applicable)
- ✓Existing survey or title policy (helpful, not required)
Educational checklist only. Not a commitment to lend and not a complete list of conditions. Documentation requirements are governed by agency guidelines (Fannie Mae Selling Guide, FHA Handbook 4000.1 incl. Update 18 (August 12, 2026), VA Lender's Handbook, USDA HB-1-3555) and individual investor overlays. Your Simply Approved Mortgages Loan Officer will provide your specific document list based on your scenario.
Credit Reports and Credit Monitoring for Refinance
Credit is one of the four underwriting buckets every lender reviews — and one of the few you can actively improve before you apply. Monitoring your credit throughout the process helps you catch errors, fraud, and score changes early, which protects your approval timeline and your rate.
Ordering Credit for Your Pre-Approval File
Once you sign your loan application (Form 1003) and disclosures, your Simply Approved Mortgages Loan Officer orders a tri-merge residential mortgage credit report (RMCR) from Equifax, Experian, and TransUnion. This is a hard inquiry, but FICO's model treats mortgage inquiries within a 45-day window as a single event, so shopping lenders during that window will not stack on your score.
- What we need from you: signed borrower authorization, government-issued photo ID, Social Security number (or ITIN), and current address.
- What the report shows underwriters: middle FICO score, open tradelines, minimum payments, late history, collections, public records, and recent inquiries.
- How long it's valid: 120 days for conventional loans and for FHA/VA/USDA (HUD guidelines, VA Lender's Handbook Ch. 4). Older reports must be re-pulled before closing.
- Rapid rescore: if a legitimate error is on your report, we can request a rapid rescore in 3–7 business days after you supply documentation from the creditor.
This link redirects to our third-party credit vendor's payment portal. You pay the report fee directly so we can pull your tri-merge credit report for your pre-approval file. A credit pull is required for underwriting; this is not a commitment to lend.
Review and Monitor Your Credit at MyITINCredit.com
Before we pull your file, review and monitor your credit at MyITINCredit.com. Their $1 promotional trial gives you tri-bureau visibility plus ongoing credit monitoring so you can catch changes, disputes, or new accounts as they appear — not after they've already delayed your loan.
- Verify accuracy: confirm names, addresses, SSN/ITIN, and every open account belong to you.
- Dispute errors: the Fair Credit Reporting Act gives you the right to dispute inaccurate items directly with the bureau — no charge.
- Address collections and charge-offs: a settled or paid collection can be documented in advance so it does not stall underwriting.
- Pay down utilization: credit-card balances reported below 30% of the limit typically produce the strongest scores.
- Avoid new credit: do not open new cards, finance a car, or co-sign for anyone from now through closing.
- Monitor continuously: credit monitoring alerts you to new inquiries, balance changes, and potential identity theft while your loan is in process.
MyITINCredit.com is a service operated by Simply Approved Corporation (a DBA of that entity), which is the parent company of Simply Approved Mortgages LLC. Simply Approved Mortgages may receive subscription revenue if you choose to enroll. Credit monitoring through MyITINCredit.com is optional and is not required to apply for or obtain a mortgage with us. Promotional pricing, trial terms, and monitoring features are set by MyITINCredit.com and subject to change.
Why credit monitoring matters during a mortgage — A single new collection, missed payment, or unauthorized inquiry can change your qualifying score or trigger additional underwriting conditions. Typical minimum scores* — Conventional 620, FHA 580 (3.5% down) or 500 (10% down), VA no HUD minimum (most lenders 580–620), USDA typically 640, Jumbo 680–740, Doctor Mortgage 680–700+, Non-QM/DSCR varies by program, ITIN 620–680 alternative credit. Investor and lender overlays apply; individual results vary. Not a commitment to lend.
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
Using your equity
Cash-out, HELOC, or second mortgage — how to choose
There are three common ways to convert equity into usable funds, and the right one usually comes down to one question: is the rate on your existing first mortgage worth protecting? Everything below is structural education — not a quote, lock, offer, or commitment to lend.
Cash-out refinance
Replaces your existing first mortgage with a larger one and returns the difference, less costs, as cash at closing.
Often fits: Borrowers whose current first-mortgage rate is not meaningfully better than what is available today, who want one payment, and who need a larger lump sum.
Watch for: You are re-setting the whole balance at the new rate and usually a new 30-year clock. Closing costs apply to the entire loan amount, and owner-occupied cash-out has its own loan-to-value ceilings by program.
HELOC (home equity line of credit)
A revolving second lien you draw from as needed during a draw period, then repay. The first mortgage stays exactly as it is.
Often fits: Borrowers holding a low first-mortgage rate, staged expenses such as a renovation, or anyone who wants access to funds without drawing all of it.
Watch for: Most HELOCs carry a variable rate, so the payment can move; some have an interest-only draw period followed by a materially higher fully-amortizing payment, plus annual or early-closure fees.
Fixed second mortgage / home equity loan
A one-time lump sum as a fixed-rate second lien behind your existing first mortgage.
Often fits: A known, one-time amount when you want payment certainty and do not want to touch a favorable first mortgage.
Watch for: Second-lien pricing is generally higher than first-lien pricing, and you now carry two mortgage payments with two separate payoff dates.
Example: consolidating higher-cost debt
A homeowner carrying revolving balances and an auto loan may be able to pay those off with a cash-out refinance or a second lien so there is one secured payment instead of several unsecured ones. The monthly outflow can fall because a mortgage is amortized over a much longer term than a card or an auto note. That longer term is also the catch: spreading the same balance over 30 years can increase the total interest paid over the life of the debt even when the monthly figure improves.
The bigger tradeoff is legal, not arithmetic. Credit card and medical balances are unsecured; a mortgage is secured by your home. Consolidating converts unsecured debt into debt your home stands behind. This is not debt settlement, debt relief, or credit repair, and we make no representation about what it will do to your credit scores.
Example: using equity to buy an investment property
Equity pulled from a primary residence is a common source of down payment and reserves on a rental purchase, because it avoids liquidating investments. Underwriting then looks at both properties: the new payment on your primary counts in your debt-to-income ratio, and rental income is generally only credited with documentation the program accepts, often at less than the full rent.
Vacancy, maintenance, insurance on a non-owner-occupied property, and the risk that the rental underperforms all sit on the primary home once its equity is encumbered. Investment property financing also prices and qualifies differently than owner-occupied financing, and business-purpose products are governed by separate rules and availability.
Tapping home equity — the honest tradeoffs
Pros — Tapping home equity
- +Consolidates several payments into one secured payment with a single due date.
- +Mortgage amortization is far longer than card or auto terms, which can lower total monthly outflow.
- +A HELOC or fixed second leaves a favorable existing first-mortgage rate untouched.
- +Funds can be used for renovation, reserves, education, or a down payment on another property.
- +Mortgage interest may be deductible in some circumstances — confirm with your tax advisor, not with us.
Cons / watch-outs — Tapping home equity
- −Your home secures the balance, so unsecured debt becomes debt the property stands behind.
- −Re-amortizing over a longer term can increase total interest paid even when the payment falls.
- −Cash-out refinancing resets the entire first mortgage, including any rate you currently hold.
- −HELOC rates are usually variable and the payment can rise after the draw period ends.
- −Closing costs, appraisal requirements, and loan-to-value ceilings apply, and paid-off revolving accounts can be used again.
Refinance Calculator — Frequently Asked Questions (2026)
Answers to the most common refinance calculator — (2026) questions, written by licensed loan officers.
Questions answered? Start your file
A Simply Approved Mortgages Loan Officer confirms eligibility, documents, and loan structure before anything is submitted to a lender. Educational only until you receive a Loan Estimate.
Not a loan application, rate lock, or commitment to lend. Binding figures appear on your Loan Estimate.
Ask SAM anything about refinance-calculator
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
CFPB
CFPB — Should you refinance your mortgage?
Freddie Mac
Freddie Mac — Primary Mortgage Market Survey (weekly rate average)
HUD
HUD — FHA Streamline Refinance (Handbook 4000.1)
VA
VA — Interest Rate Reduction Refinance Loan (IRRRL)
FRED / St. Louis Fed
FRED — 30-Year Fixed Rate Mortgage Average (MORTGAGE30US)
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the refinancing and equity library
This page sits inside our Refinancing and equity coverage.
What most readers open next
- HELOC versus cash-out comparisonBecause the two equity paths behave very differently.
- The break-even calculatorBecause to see how long it takes to recover closing costs.
- A current value estimateBecause available equity starts with the property value.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
Refinancing process step-by-step
Application → Loan Estimate → appraisal → underwriting → CD → rescission → funding.
Read the guide →Guide
Cash-out refinance
80% LTV rules, seasoning, HELOC vs cash-out math.
Read the guide →Guide
FHA Streamline refinance
No-appraisal FHA-to-FHA rate reduction under HUD 4000.1.
Read the guide →Guide
FHA cash-out refinance
FHA-specific 80% LTV cash-out rules and MIP treatment.
Read the guide →Guide
HELOC — Home Equity Line of Credit
Variable-rate revolving line behind your first mortgage.
Read the guide →Guide
Fixed-rate second mortgage
Fixed-rate closed-end alternative to cash-out.
Read the guide →Guide
Mortgage payment (PITI) calculator
Principal, interest, taxes, insurance breakdown.
Read the guide →Guide
Closing costs by state
LodeStar state-by-state closing cost data for refinances and purchases.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
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Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
What are you looking to do?
Pick one — the form adapts.Pick a loan type
Programs for buying a home.Conventional loan — 3–20% down · 620+ FICO
Tell us about your scenario
The form below is tailored to Conventional loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
Purchase price and down payment help us size the conforming loan.
A range is enough here — no credit report is pulled and your credit is not affected.
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Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
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We update our refinance-calculator guidance as HUD, FHFA, VA, USDA and CFPB publish new figures. If you want our updates to show up more often when you search Google, you can mark us as a preferred source from the Top Stories carousel:
- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
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- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
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Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
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