Refinance
Live Refinance Rates - No Personal Info Required
Set the loan purpose to refinance or cash-out below. Rate Direct returns live wholesale refinance rates for your scenario in seconds. No phone, email, or credit pull. Backed by the Loan Factory $2,000 Best Price Guarantee on qualifying loans.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Rate-and-Term vs Cash-Out
Rate-and-term refinance
You replace your existing loan with a new one at a different rate or term. No cash out beyond limited reimbursement. Prices closest to purchase rates, typically within 0.125% to 0.25%.
Cash-out refinance
You replace your existing loan with a larger loan and take the difference in cash. Higher rate - typically 0.25% to 0.75% above rate-and-term depending on LTV. Maximum LTV is usually 80% for Conventional and 80-85% for FHA.
Refinance Break-Even Math
The simplest test: divide closing costs by monthly savings. If you plan to keep the loan past that breakeven, refinancing is positive expected value.
Example
Current loan: $400,000 at 7.25% → new loan at 6.50%
Monthly savings: roughly $200
Closing costs: $4,000
Break-even: $4,000 / $200 = 20 months
If you plan to keep the property longer than 20 months, the refi pays for itself. Beyond that, every monthly payment is pure savings.
Frequently Asked Questions
What are current refinance rates?+
Refinance rates change throughout the day. The pricer on this page returns live wholesale rates for your specific scenario - loan amount, LTV, FICO bracket, property profile - rather than yesterday's averaged number from Freddie Mac's survey.
Is the refinance rate the same as the purchase rate?+
Usually not. Rate-and-term refinances price within 1/8 to 1/4 of a point of purchase rates. Cash-out refinances price meaningfully higher - typically 0.25% to 0.75% above purchase depending on LTV. Investment property and second home refinances add more.
When does a refinance make sense?+
When the monthly savings recover your closing costs within the time you plan to keep the loan. As a quick rule, a refinance that saves $200/month on $4,000 of closing costs breaks even at 20 months. If you plan to stay longer than that, refinance.
Does Rate Direct charge an origination fee on refinances?+
No - Rate Direct uses wholesale pricing with no origination fee. Third-party costs like title, recording, and prepaids still apply because they are not lender-controlled.
Can I refinance with no closing costs?+
Yes. A "no-cost" refinance trades a slightly higher rate for a lender credit that pays your closing costs. Use the pricer to see both options - the lowest-rate row with fees, and a higher-rate row with a rebate that covers costs.
Is the $2,000 Best Price Guarantee available on refinances?+
Yes - the Loan Factory $2,000 Best Price Guarantee applies to qualifying fixed-rate Conventional, FHA, and VA refinances of $200,000 or higher, with the standard program rules.
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