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Ask us what refinance rate we can offer you!

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower – or higher – than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

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Mortgage refinance overview

Refinancing your mortgage with a conventional loan has many advantages. You can get a competitive interest rate when you have good credit and income. You can avoid paying for private mortgage insurance if your home equity is 20% or more. You can refinance more kinds of homes and more types of loans with conventional mortgages too.

Use the calculator below to estimate how much you might save with a mortgage refinance. Keep in mind by refinancing, the total finance charges you pay may be higher over the life of the loan.

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Lower your interest rate

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Lower your monthly payment

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Save money on interest

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Shorten your loan term

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How much can you save?

Find out how much you might save by refinancing your home to a lower rate. By refinancing, the total finance charges you pay may be higher over the life of the loan. Change the default values to personalize your savings estimate!

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This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

Refinancing might save you
$ a month

Ask us what refinance rate we can offer you

The mortgage refinance rate we may be able to offer is personal to you. Your interest rate is affected by the type of refinance loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a refinance rate that is lower - or higher - than the rate you see advertised by other lenders. Ask us today what refinance rate we can offer you.

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Choose the mortgage refinance that’s right for you!

At Freedom Mortgage, we offer refinancing on conventional home loans, which are the mortgages many homeowners have across the United States. We also offer refinancing for VA, FHA, and USDA loans.

Your refinancing choices depend on the mortgage you have and the mortgage you want. You can refinance any type of mortgage with a conventional loan. Streamline refinances are only available for VA, FHA, and USDA loans. Our loan comparison can help you decide.

Conventional Refinances

  • All loan types are eligible
  • Application requires more paperwork
  • Mortgage insurance not required with 20% home equity
  • Closing takes more than 30 days

VA IRRRL (Streamline) Refinances

  • Only VA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance not required
  • Closing generally takes less than 30 days
Learn about IRRRLs

FHA Streamline Refinances

  • Only FHA loans are eligible
  • Application requires less paperwork
  • Easy credit qualification
  • Mortgage insurance required
  • Closing generally takes less than 30 days
Learn about FHA streamlines

Refinance & Remove PMI

  • Requires 20% home equity to remove mortgage insurance from conventional loans
  • FHA loans refinance into conventional loans
  • Application requires more paperwork
  • Closing generally takes more than 30 days
Learn how to remove PMI

Looking for more detail?

Our full loan comparison table can help you decide.

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Mortgage refinance fees and requirements

Conventional mortgage refinances are sometimes called “full document” refinances because you need to complete a new application, provide a new set of income and financial documents, and pay a new set of closing costs. You will also need to meet credit, income, and financial requirements to get your refinance approved. Here’s what you need to know about how mortgage refinance works.

New application and documentation

You will need to complete a new application and provide income and financial documents like current pay statements and tax returns. Learn more about applying

New credit check

We will probably check your credit score before we approve your refinance. Your credit score can affect the interest rate we may offer too. Learn more about credit scores

New home appraisal

You may need a new home appraisal to estimate the current fair market value of your house. A home appraisal typically costs $300 to $400.Learn more about home appraisals

Private mortgage insurance

With a conventional mortgage refinance, you need at least 20% equity in your home or you will need to pay for private mortgage insurance (PMI). According to Freddie Mac, homeowners can expect mortgage insurance to cost between $30 and $70 per month for every $100,000 they borrow.Learn more about PMI

Closing costs

Closing costs for mortgage refinancing can include lender fees, discount points, and more. You may need to pay property taxes and homeowners insurance premiums too. According to Freddie Mac, the average closing costs for refinancing a mortgage are approximately $5,000.Learn more about closing costs

Loan disclosures and closing

Once you submit your application, you will need to review and sign loan disclosures. You’ll also need to attend the closing of your new mortgage.Learn more about disclosures

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When to refinance

The best time to refinance your mortgage is when current interest rates are significantly lower than the rate you have on your mortgage now. That's because nearly all mortgage refinances come with closing costs you will need to pay or add to your loan amount. You want to make paying these costs worthwhile when you refinance your home and lowering your interest rate is often the best way to do it.

Our mortgage refinance calculator can help you decide when refinancing makes sense. The calculator lets you put in your current interest rate and loan information as well as the new interest rate you think you might get. It then estimates your savings and compares these savings to the potential costs. You might pay anywhere between 2% and 6% of your loan amount in closing costs when you refinance according to Forbes.com.

Think about how long you plan to live in your home before you refinance your mortgage. Refinancing often does not make sense if you plan to sell your house in the near future. That's because you might not realize enough savings from lowering your rate before you sell to offset your closing costs (this is called "breaking even").

Finally, look at the total amount of money you will pay in interest over the life of your new loan. Sometimes when you refinance your mortgage, you can end up paying more for interest than you would have if you kept your old mortgage. For example, this can happen when you extend the term of your loan. If you have 20 years left on your current mortgage and you refinance to a new 30 year mortgage, you might end up paying more money in interest even with a lower rate because you are paying back the loan over a longer period of time.

Existing Freedom Mortgage customers can often keep their loan term the same when they choose us for mortgage refinancing.

More reasons to refinance your mortgage

Lowering your rate and saving money on interest are two reasons homeowners consider mortgage refinances. But they aren't the only ones! Refinancing can also help you:

  • Lower monthly mortgage payments. Refinancing a mortgage may help to reduce the size of your loan payments each month. You can use the savings to invest in college and retirement accounts, to pay bills, to pay down other debts, and more. Keep in mind by refinancing a home loan to lower your payments, the total finance charges you pay may be higher over the life of the loan.

  • Remove mortgage insurance. Some homeowners refinance to stop paying mortgage insurance. If you have an FHA loan, refinancing to a conventional loan might help you stop paying FHA mortgage insurance premiums. You don’t always need to refinance your mortgage to get rid of mortgage insurance. If you have a conventional mortgage, you should be able to stop paying for private mortgage insurance once your home equity reaches 20%.

  • Shorten the life of the home loan. When you pay off a mortgage sooner than the terms require, you might save money on interest. That’s because you are paying back the interest over a shorter period of time. Some homeowners refinance mortgages to shorten the life of their loans. Keep in mind that it is often not necessary to refinance your home to pay off a mortgage faster. You can simply make extra payments.

  • Make mortgage payments more predictable. If you have an adjustable rate mortgage, you can refinance your home loan to a fixed rate mortgage and make your monthly payments more predictable. With an adjustable rate mortgage, your interest rate and monthly payments can change every year. With a fixed rate mortgage, your interest rate and monthly payments stay the same.

  • Get cash from your home’s equity. Refinancing a home mortgage may also help you get cash from your home’s equity. This is called a "cash out refinance". You pay off your current mortgage balance and replace it with a new mortgage for a higher principal balance, and get the difference as cash at closing.

What is the mortgage refinance process?

Refinancing your home requires getting a new mortgage. You pay off your current mortgage and replace it with a new mortgage that has better rates or better terms. Almost all refinances will require you to complete a new application, provide documents, review and sign disclosures, pay closing costs, and attend the closing of your new mortgage. You will also need to meet your lender's credit, income, and financial requirements to get your refinance approved.

How much paperwork is required and how much it costs to refinance depends on the type of mortgage you choose. When you are refinancing a conventional loan, the process is similar to getting a mortgage to buy a house. You have to complete a new application, provide a new set of financial documents, and pay a new set of closing costs. For these reasons, conventional refinances are sometimes called "full document" refinances.

When you have a government-backed mortgage, such as a VA or FHA loan, you may be able to use the streamline program to refinance your home. Streamline refinance let you get a lower rate with less paperwork and a faster closing. See the "How to Refinance" section on this page to learn more!

How to refinance

When you refinance your home, you pay off your current mortgage and replace it with a new one. You might decide refinancing makes sense to take advantage of lower interest rates, get better loan terms, pay off your loan faster, or eliminate mortgage insurance. If you’re wondering how to refinance a home, here are important steps you’ll need to take.

Decide if mortgage refinancing makes sense

Since you’ll likely pay closing costs when you refinance, you’ll want to weigh the costs versus the benefits. One way to do this is to determine the “break even” point. For example, if your closing costs are $2,400 and you’re saving $100 per month on your new loan, it will take two years (24 months x $100 per month saved) to break even and start saving.

Refinancing can make financial sense when you reach your break-even point quickly. If it will take several years to break-even, you might decide refinancing doesn’t make sense. Our mortgage refinance calculator can help you estimate how much you might save by refinancing.

Research your mortgage refinance loan options

You can refinance a home with a conventional, VA, FHA, or USDA loan. Which one you choose depends on factors such as your current loan type, your financial goals, your home’s value, and whether or not you have mortgage insurance. Here’s a closer look at refinancing options.

  • Conventional refinances. There are several advantages to conventional mortgage refinances. Regardless of your current loan type, you can refinance into a conventional mortgage. You can also refinance a house that isn’t your primary residence. That includes vacation houses as well as rental or investment properties. And if you have 20% equity or more in your home, you can often avoid paying mortgage insurance with your new loan.

  • VA streamline refinances. These refinances offer an easier and faster way to lower your rate or get better terms compared to conventional loans. If you currently have a VA loan and are up to date on your payments, you may be eligible for this program. Learn more about VA streamline (IRRRL) refinances.

  • FHA streamline refinances. This refinance is a good option when you already own a home with an FHA loan. The application involves less paperwork and has easier credit requirements compared to a conventional loan. However, this refinance you will need to pay mortgage insurance premiums regardless of the value of your home’s equity. Learn more about FHA streamline refinances.

Review your finances and credit

Your eligibility for a loan refinance and the interest rate we can offer you can depend on your credit score. In many cases, a higher credit score can help you get a lower rate. Make sure to review your credit report to ensure it’s accurate. While your chances of getting approved for a refinance are better with a higher credit score, Freedom Mortgage can often help you get approved with a lower score.

Estimate your home’s current value

Your home’s current fair market value can influence whether you qualify for a refinance. That’s because we use your house’s value to calculate a loan-to-value ratio. Loan-to-value ratio is a percentage we get by dividing the size of your mortgage by the value of your house.

For example if your home is worth $200,000 and you would like to refinance it with a $150,000 mortgage, then the loan-to-value ratio is 75%. (Calculation: $150,000 ÷ $200,000 = 0.75 or 75%.) Mortgage refinance loans have maximum loan-to-value ratios and you have to stay at or below these maximums ratios to qualify for a loan. Generally, the lower your loan-to-value ratio, the greater the chances your refinance loan will be approved.

Ask us the mortgage refinance rate we can offer you

Freedom Mortgage may be able to offer you a refinance interest rate that’s lower or higher than the rate you see offered by other lenders. The rate you may receive from us depends on your credit score, income, finances, current market conditions, and the type of refinance loan you want.

Submit an application and documentation

Most conventional refinances will require you to complete a new application and provide documentation. Streamline refinances often have less paperwork and an easier application process compared to conventional refinances. Learn more about how to apply for a mortgage.

Review disclosures and attend closing

There are a few things you can expect after applying for a mortgage refinance. You’ll need to review the Initial Disclosure and the Intent to Proceed documents. You can review and sign these electronically after providing your "e-consent" rather than having them mailed to you – this helps speed up the process.

Your application will be reviewed by our underwriting team. You may need to provide some additional documentation. A timely response to these requests will keep the process moving along. Once your loan has been approved, we’ll let you know and provide you with next steps including a review of Closing Disclosures and setting up a closing date. Finally, you will need to attend your closing to sign mortgage documents and pay any closing costs.

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The Freedom Mortgage Difference

We are committed to making you a life-long customer with exceptional mortgages and exceptional service!

Our Loan Advisors will help you choose the right loans. We’ll answer your questions and work with you step by step to make buying or refinancing your home easy and hassle-free.

We’ll also keep an eye on rates and let you know when you can lower your mortgage payments or get cash from your home’s equity. That’s Freedom.

We are proud to support veterans, service members, and their families with our charitable work. We’re also committed to fighting hunger in communities across America.