Refinance Your Mortgage: A Deeper Dive
Lower your payment, eliminate mortgage insurance, consolidate debt, or fund improvements—all with a plan that fits your goals. Parish Lending compares scenarios and shows your true break‑even.
See If Refinancing Makes Sense
Answer a few quick questions. We’ll estimate savings, options, and your break‑even.
What Does “Refinance” Mean?
To refinance is to replace your current mortgage with a new one—reorganizing the terms (rate, length, costs) to better fit your goals. In practice, that can lower interest, remove mortgage insurance, change your term, consolidate debt, or unlock equity for projects.
When is a refinance worth it?
Rules of thumb (like needing a 1–2% rate drop) are just starting points. Your real decision should weigh: time in the home, monthly savings, closing costs, and total interest over the life of the loan. The calculator below gives a quick read; we’ll also run a full side‑by‑side for you.
Break‑Even Calculator
Reason #1 · Unlock Monthly Savings
Lowering your rate or removing mortgage insurance can reduce your payment and total interest. Even small rate improvements may add up over years. We’ll verify if an appraisal is needed and whether a streamlined path applies to you.
- FHA Streamline and VA IRRRL: often no appraisal and lighter documentation (program‑specific).
- Conventional: remove private mortgage insurance (PMI) if your equity supports it.
- Term change: shorten to pay off faster, or extend to lower monthly cost—your choice.
Reason #2 · Consolidate High‑Interest Debt
Replace multiple high‑APR balances with one lower‑rate mortgage payment. This can simplify budgeting and free up cash flow.
- Roll in credit cards or personal loans at far lower housing rates.
- One predictable payment; choose a payoff strategy that fits your goals.
- Consider closing costs and total interest over time. We’ll map an accelerated payoff to keep you on track.
Reason #3 · Cash‑Out for Home Improvements
Use equity for a pool, kitchen, or energy upgrades—often at a lower cost than unsecured loans.
- New loan replaces your current mortgage; you receive the difference in cash at closing.
- Primary residences typically allow up to ~80% loan‑to‑value (LTV) for cash‑out; multi‑unit/other occupancy may differ.
- Most programs require seasoning on your current loan; we’ll confirm the current rules for your scenario.
Refinance Paths at a Glance
| Option | Best For | Typical Appraisal? | Docs |
|---|---|---|---|
| Rate/Term (Conventional) | Lower rate/payment, remove PMI, change term | Often yes | Income, assets, credit, mortgage statement, insurance |
| Cash‑Out (Conventional) | Projects, debt consolidation, large expenses | Yes | Income, assets, credit, appraisal; equity/LTV applies |
| FHA Streamline | Current FHA borrowers wanting lower rate/payment | Often no | Reduced docs; program specifics apply |
| VA IRRRL | Eligible veterans with current VA loans | Often no | Streamlined; occupancy and net benefit tests apply |
Guidelines, LTV caps, and seasoning requirements change—your exact path is scenario‑specific. We’ll confirm current rules and show comparisons.
Documents You’ll Need
- Copy of your valid ID (Driver’s License, Passport, Green Card, etc)
- Paystubs covering the most recent 30‑day period with YTD totals
- 2 years W‑2s and/or 2 years signed/filed Federal Tax Returns (all pages/schedules)
- 2 months most recent bank statements — all pages
- Current mortgage statement and homeowner’s insurance declarations page
- For debt payoff: most recent statements for any debts you want to consolidate
Upload securely through our full application:
Refinance FAQs
How long does a refinance take?
Most refinance timelines range from a few weeks to around a month, depending on appraisal and documentation. We’ll keep you updated at each step.
Do I need perfect credit?
No. Credit impacts pricing and options, but we’ll shop multiple lenders to find a fit. We can also map quick credit wins before locking.
Should I wait for rates to drop?
If the numbers work now (and you plan to stay long enough to break even), you can capture savings today—and refinance again later if markets improve.
Is a HELOC better than a cash‑out refi?
HELOCs can be great for smaller, flexible projects. Cash‑out refis can make sense when you want one fixed payment or to also change your first‑mortgage terms. We’ll compare both.
Let’s model your best‑fit refinance.
We’ll run side‑by‑side scenarios (rate/term, streamline, cash‑out) and show your break‑even clearly—no pressure.