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Citi’s offerings and lending guidelines may differ.","content:disclosures:global-floating-disclosure.json","Global Floating Disclosure","disclosures/global-floating-disclosure.json",{"title":91,"subtext":7,"portraitImage":92,"imageAlt":93,"imageWidth":94,"background":95,"borderRadius":96,"maxWidth":97,"paddingTopBottom":98,"paddingLeftRight":98,"gap":98,"variant":99},"Citi is #1 in Customer Satisfaction with Mortgage Origination - ***[J.D. Power 2025 Award](https://www.jdpower.com/business/awards)***","/media/jdpower-trophy.png","J.D. Power 2025 Trophy",48,"var(--brand-default)",0,650,16,"default",{"data":101,"body":103,"excerpt":-1,"toc":177},{"title":7,"description":102},"Key insights:",{"type":104,"children":105},"root",[106,117,137,151,172],{"type":107,"tag":108,"props":109,"children":110},"element","p",{},[111],{"type":107,"tag":112,"props":113,"children":114},"strong",{},[115],{"type":116,"value":102},"text",{"type":107,"tag":118,"props":119,"children":120},"ul",{},[121,127,132],{"type":107,"tag":122,"props":123,"children":124},"li",{},[125],{"type":116,"value":126},"Mortgage refinancing involves replacing your current mortgage with a new loan with new terms",{"type":107,"tag":122,"props":128,"children":129},{},[130],{"type":116,"value":131},"Common options include rate-and-term refinancing, cash-out refinancing and streamline refinancing",{"type":107,"tag":122,"props":133,"children":134},{},[135],{"type":116,"value":136},"The process is similar to applying for your first mortgage, but there are some key differences depending on the type of refinance you’re doing",{"type":107,"tag":108,"props":138,"children":139},{},[140,142,149],{"type":116,"value":141},"If you’ve owned your home for a while, it’s natural to check in on whether your ",{"type":107,"tag":143,"props":144,"children":146},"a",{"href":145},"/home-loans/articles/what-is-a-mortgage/",[147],{"type":116,"value":148},"mortgage ",{"type":116,"value":150},"still fits. Life changes,\nincome shifts and priorities evolve, but your loan stays the same unless you decide to update it.",{"type":107,"tag":108,"props":152,"children":153},{},[154,156,162,164,170],{"type":116,"value":155},"That's where ",{"type":107,"tag":143,"props":157,"children":159},{"href":158},"/refinancing/",[160],{"type":116,"value":161},"mortgage refinancing",{"type":116,"value":163}," comes in. Homeowners may start looking into it because they want to lower their monthly payments, take advantage of a lower rate, switch ",{"type":107,"tag":143,"props":165,"children":167},{"href":166},"/home-loans/",[168],{"type":116,"value":169},"loan types",{"type":116,"value":171},", take cash out or shorten the life of their loan. In some cases, it's about creating a little more breathing room each month. In others, it's about shaping the mortgage to better support long- term goals.",{"type":107,"tag":108,"props":173,"children":174},{},[175],{"type":116,"value":176},"So how does refinancing a mortgage work? And what should you expect along the way? This guide walks through how refinancing works, the most common options and the factors lenders review so you can decide whether it’s worth exploring.",{"title":7,"searchDepth":178,"depth":178,"links":179},2,[],{"data":181,"body":183,"excerpt":-1,"toc":204},{"title":7,"description":182},"Refinancing replaces your current mortgage with a new one. The new loan pays off the remaining balance on your existing mortgage, and you move forward with a new loan.",{"type":104,"children":184},[185,189,194,199],{"type":107,"tag":108,"props":186,"children":187},{},[188],{"type":116,"value":182},{"type":107,"tag":108,"props":190,"children":191},{},[192],{"type":116,"value":193},"The new mortgage loan may change how long the loan lasts, how payments are structured or how the loan is set up overall. While many people explore refinancing to adjust monthly costs, it’s not just a way to cut costs—it’s about reshaping your loan to match your financial and life goals.",{"type":107,"tag":108,"props":195,"children":196},{},[197],{"type":116,"value":198},"Some homeowners choose to explore refinancing with lenders they already trust. Citi, for example, offers mortgage refinancing options across a range of loan types, including conventional refinance loans and government-backed options like FHA and VA refinances, depending on eligibility. These options are designed to support different goals, whether that’s adjusting monthly costs, changing your loan structure or updating a mortgage to better match current plans.",{"type":107,"tag":108,"props":200,"children":201},{},[202],{"type":116,"value":203},"There’s no single “best” refinance. The right option is the one that best fits your situation, and that\ncan look different from one homeowner to the next.",{"title":7,"searchDepth":178,"depth":178,"links":205},[],{"data":207,"body":209,"excerpt":-1,"toc":360},{"title":7,"description":208},"Refinancing comes in a few different forms, each designed to support different needs. Understanding the types can help you assess your options as you explore what’s available.",{"type":104,"children":210},[211,215,226,231,236,249,254,264,269,274,292,297,317,330,335,348,353],{"type":107,"tag":108,"props":212,"children":213},{},[214],{"type":116,"value":208},{"type":107,"tag":216,"props":217,"children":219},"h3",{"id":218},"rate-and-term-refinance",[220],{"type":107,"tag":143,"props":221,"children":223},{"href":222},"/refinancing/articles/rate-and-term/",[224],{"type":116,"value":225},"Rate-and-term refinance",{"type":107,"tag":108,"props":227,"children":228},{},[229],{"type":116,"value":230},"A rate-and-term refinance lets you change your interest rate, your loan length or both, without\nincreasing how much you owe.",{"type":107,"tag":108,"props":232,"children":233},{},[234],{"type":116,"value":235},"Homeowners often look at this option when they want to:",{"type":107,"tag":118,"props":237,"children":238},{},[239,244],{"type":107,"tag":122,"props":240,"children":241},{},[242],{"type":116,"value":243},"Lower their monthly payments by changing the interest rate or extending\nthe loan term",{"type":107,"tag":122,"props":245,"children":246},{},[247],{"type":116,"value":248},"Pay off their home sooner by switching to a shorter loan term",{"type":107,"tag":108,"props":250,"children":251},{},[252],{"type":116,"value":253},"With a rate-and-term refinance, the principal amount you borrowed stays the same— you're just adjusting the interest rate and loan length to better meet your needs.",{"type":107,"tag":216,"props":255,"children":257},{"id":256},"cash-out-refinance",[258],{"type":107,"tag":143,"props":259,"children":261},{"href":260},"/refinancing/articles/cash-out/",[262],{"type":116,"value":263},"Cash-out refinance",{"type":107,"tag":108,"props":265,"children":266},{},[267],{"type":116,"value":268},"With a cash-out refinance, you replace your current mortgage with a new one for a higher amount and take the difference as cash.",{"type":107,"tag":108,"props":270,"children":271},{},[272],{"type":116,"value":273}," A cash-out refinance may help when homeowners want to:",{"type":107,"tag":118,"props":275,"children":276},{},[277,282,287],{"type":107,"tag":122,"props":278,"children":279},{},[280],{"type":116,"value":281},"Pay for home improvements",{"type":107,"tag":122,"props":283,"children":284},{},[285],{"type":116,"value":286},"Consolidate existing debt",{"type":107,"tag":122,"props":288,"children":289},{},[290],{"type":116,"value":291},"Cover a large, planned expense",{"type":107,"tag":108,"props":293,"children":294},{},[295],{"type":116,"value":296},"Because you’re borrowing more than you currently owe, lenders look closely at your home equity and\noverall financial picture to be sure the new loan remains manageable.",{"type":107,"tag":216,"props":298,"children":300},{"id":299},"streamline-refinances-for-fha-or-va-loans",[301,303,309,311],{"type":116,"value":302},"Streamline refinances for ",{"type":107,"tag":143,"props":304,"children":306},{"href":305},"/home-loans/fha-loan/",[307],{"type":116,"value":308},"FHA",{"type":116,"value":310}," or ",{"type":107,"tag":143,"props":312,"children":314},{"href":313},"/home-loans/va-loan/",[315],{"type":116,"value":316},"VA loans",{"type":107,"tag":108,"props":318,"children":319},{},[320,322,328],{"type":116,"value":321},"If you already have an FHA or VA loan, a ",{"type":107,"tag":143,"props":323,"children":325},{"href":324},"/home-loans/articles/va-irrrl-streamline-refinance/",[326],{"type":116,"value":327},"streamline refinance",{"type":116,"value":329}," may offer a simpler path to updating your mortgage.",{"type":107,"tag":108,"props":331,"children":332},{},[333],{"type":116,"value":334},"These refinances are designed to:",{"type":107,"tag":118,"props":336,"children":337},{},[338,343],{"type":107,"tag":122,"props":339,"children":340},{},[341],{"type":116,"value":342},"Require less documentation",{"type":107,"tag":122,"props":344,"children":345},{},[346],{"type":116,"value":347},"Allow you to move through the process more quickly",{"type":107,"tag":108,"props":349,"children":350},{},[351],{"type":116,"value":352}," Streamline refinances are ideal for eligible borrowers who are seeking a better rate but don’t want to go through a paperwork-heavy process.",{"type":107,"tag":354,"props":355,"children":359},"tip",{":text":356,"icon":357,"title":358},"\"\\nThinking about refinancing? Our [Mortgage Refinance Calculator ](/calculators/refinance/)can help you decide if it's worth it.\"","Bulb","PRO TIP",[],{"title":7,"searchDepth":178,"depth":178,"links":361},[362,364,365],{"id":218,"depth":363,"text":225},3,{"id":256,"depth":363,"text":263},{"id":299,"depth":363,"text":366},"Streamline refinances for FHA or VA loans",{"data":368,"body":370,"excerpt":-1,"toc":511},{"title":7,"description":369},"While refinancing can feel intimidating at first, most homeowners find that the process follows a clear, steady path.",{"type":104,"children":371},[372,376,382,387,401,406,412,417,428,434,439,452,457,470,475,488,493,506],{"type":107,"tag":108,"props":373,"children":374},{},[375],{"type":116,"value":369},{"type":107,"tag":216,"props":377,"children":379},{"id":378},"_1-review-your-current-mortgage-and-financial-goals",[380],{"type":116,"value":381},"1. Review your current mortgage and financial goals ",{"type":107,"tag":108,"props":383,"children":384},{},[385],{"type":116,"value":386},"Start by thinking about what you’d like to change. You might be hoping to lower your monthly payment, shorten your loan term, take cash out or simply make sure your mortgage still fits your life today. Having a clear goal may help you focus on the next steps.  ",{"type":107,"tag":216,"props":388,"children":390},{"id":389},"_2-check-your-credit-score-and-financial-position",[391,393,399],{"type":116,"value":392},"2. ",{"type":107,"tag":143,"props":394,"children":396},{"href":395},"/home-loans/articles/how-to-buy-a-house-with-bad-credit/",[397],{"type":116,"value":398},"Check your credit score and financial position",{"type":116,"value":400}," ",{"type":107,"tag":108,"props":402,"children":403},{},[404],{"type":116,"value":405},"Your lender will take a look at your overall financial picture, including your credit score, income and existing debts. This helps determine which refinance options may be available and what feels comfortable for your budget. ",{"type":107,"tag":216,"props":407,"children":409},{"id":408},"_3-compare-refinance-options-and-lenders",[410],{"type":116,"value":411},"3. Compare refinance options and lenders",{"type":107,"tag":108,"props":413,"children":414},{},[415],{"type":116,"value":416},"Different refinance options support different goals. Looking at a few choices side by side can help you see what aligns best with your plans and which options you can comfortably rule out. ",{"type":107,"tag":108,"props":418,"children":419},{},[420,422,426],{"type":116,"value":421},"Some homeowners start by reviewing options with lenders they already know, looking for ",{"type":107,"tag":143,"props":423,"children":424},{"href":158},[425],{"type":116,"value":161},{"type":116,"value":427}," across conventional and government-backed loan types, depending on eligibility. ",{"type":107,"tag":216,"props":429,"children":431},{"id":430},"_4-submit-an-application-and-financial-documents",[432],{"type":116,"value":433},"4. Submit an application and financial documents ",{"type":107,"tag":108,"props":435,"children":436},{},[437],{"type":116,"value":438},"Once you choose a path, you’ll complete an application and share documents such as pay stubs or bank statements. It’s common for lenders to ask follow-up questions—those requests are simply part of the process. Answering in a timely manner may help keep things moving. ",{"type":107,"tag":216,"props":440,"children":442},{"id":441},"_5-get-a-home-appraisal",[443,445,451],{"type":116,"value":444},"5. ",{"type":107,"tag":143,"props":446,"children":448},{"href":447},"/home-buying/articles/home-appraisal/",[449],{"type":116,"value":450},"Get a home appraisal",{"type":116,"value":400},{"type":107,"tag":108,"props":453,"children":454},{},[455],{"type":116,"value":456},"In most refinancing cases, you’ll need an appraisal to confirm your home’s current value. This step helps ensure the loan is based on accurate information. ",{"type":107,"tag":216,"props":458,"children":460},{"id":459},"_6-move-through-underwriting",[461,463,469],{"type":116,"value":462},"6. 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",{"type":107,"tag":143,"props":482,"children":484},{"href":483},"/home-buying/articles/closing-disclosure/",[485],{"type":116,"value":486},"Review your closing disclosure",{"type":116,"value":400},{"type":107,"tag":108,"props":489,"children":490},{},[491],{"type":116,"value":492},"Before closing, you’ll receive a closing disclosure, a document that outlines the final loan terms and costs. This is your opportunity to review everything carefully and ask questions. ",{"type":107,"tag":216,"props":494,"children":496},{"id":495},"_8-close-on-your-new-loan",[497,499,505],{"type":116,"value":498},"8. ",{"type":107,"tag":143,"props":500,"children":502},{"href":501},"/home-buying/articles/closing-on-a-house/",[503],{"type":116,"value":504},"Close on your new loan",{"type":116,"value":400},{"type":107,"tag":108,"props":507,"children":508},{},[509],{"type":116,"value":510},"At closing, the new mortgage replaces the old one. 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While exact requirements can vary by loan type and lender, these are the areas most homeowners are asked to review: ",{"type":104,"children":530},[531,535,593,598,604,617,677],{"type":107,"tag":108,"props":532,"children":533},{},[534],{"type":116,"value":528},{"type":107,"tag":118,"props":536,"children":537},{},[538,549,563,573,583],{"type":107,"tag":122,"props":539,"children":540},{},[541,542,547],{"type":116,"value":400},{"type":107,"tag":112,"props":543,"children":544},{},[545],{"type":116,"value":546},"Credit score:",{"type":116,"value":548}," Many lenders look for a credit score around 620 or higher, though this can vary. Generally, stronger credit opens the door to more options or more favorable terms.",{"type":107,"tag":122,"props":550,"children":551},{},[552,561],{"type":107,"tag":112,"props":553,"children":554},{},[555],{"type":107,"tag":143,"props":556,"children":558},{"href":557},"/home-buying/articles/what-is-a-good-debt-to-income-ratio/",[559],{"type":116,"value":560},"Debt-to-income ratio (DTI):",{"type":116,"value":562}," This compares your monthly debt payments to your income. A DTI of 43% or lower is often used as a guideline to help ensure the loan feels manageable alongside your other obligations.",{"type":107,"tag":122,"props":564,"children":565},{},[566,571],{"type":107,"tag":112,"props":567,"children":568},{},[569],{"type":116,"value":570},"Home equity:",{"type":116,"value":572}," The amount of equity you’ve built in your home matters, especially for certain refinance types. Many options look for around 20% equity, though some loan programs allow for less.",{"type":107,"tag":122,"props":574,"children":575},{},[576,581],{"type":107,"tag":112,"props":577,"children":578},{},[579],{"type":116,"value":580},"Stable income and employment:",{"type":116,"value":582}," Lenders want to see consistent earnings, which show you can comfortably support ongoing mortgage payments over time.",{"type":107,"tag":122,"props":584,"children":585},{},[586,591],{"type":107,"tag":112,"props":587,"children":588},{},[589],{"type":116,"value":590},"Home value confirmation:",{"type":116,"value":592}," Usually, you’ll need an appraisal to confirm your home’s current value, ensuring the refinance is based on accurate, up-to-date information.",{"type":107,"tag":108,"props":594,"children":595},{},[596],{"type":116,"value":597},"Meeting these guidelines doesn’t guarantee approval, and falling short of one doesn’t automatically rule you out. Think of them as reference points that help lenders determine which refinance options may be a good fit for your situation. ",{"type":107,"tag":216,"props":599,"children":601},{"id":600},"costs-to-expect-when-refinancing",[602],{"type":116,"value":603},"Costs to expect when refinancing ",{"type":107,"tag":108,"props":605,"children":606},{},[607,609,615],{"type":116,"value":608},"Refinancing comes with ",{"type":107,"tag":143,"props":610,"children":612},{"href":611},"/refinancing/articles/how-much-does-it-cost-to-refinance-a-mortgage/",[613],{"type":116,"value":614},"upfront costs",{"type":116,"value":616},". Knowing what they are ahead of time can make the process feel more predictable:",{"type":107,"tag":118,"props":618,"children":619},{},[620,634,647,657,667],{"type":107,"tag":122,"props":621,"children":622},{},[623,632],{"type":107,"tag":112,"props":624,"children":625},{},[626],{"type":107,"tag":143,"props":627,"children":629},{"href":628},"/home-buying/articles/closing-costs/",[630],{"type":116,"value":631},"Closing costs:",{"type":116,"value":633}," Closing costs are the general fees involved in finalizing a refinance. In most cases, they add up to about 2%–6% of the loan amount. Closing costs cover the behind-the-scenes work needed to set up the new loan, from processing paperwork to required third-party services.",{"type":107,"tag":122,"props":635,"children":636},{},[637,645],{"type":107,"tag":112,"props":638,"children":639},{},[640],{"type":107,"tag":143,"props":641,"children":642},{"href":447},[643],{"type":116,"value":644},"Appraisal fee:",{"type":116,"value":646}," Most refinances include an appraisal to confirm what the home is worth today. This helps make sure the loan is based on an accurate value. Appraisal fees often fall in the $300–$450 range, depending on the property and location.",{"type":107,"tag":122,"props":648,"children":649},{},[650,655],{"type":107,"tag":112,"props":651,"children":652},{},[653],{"type":116,"value":654},"Title services:",{"type":116,"value":656}," Title fees cover the work of checking that the home’s ownership records are clear and up to date. This step helps prevent surprises down the road and is a routine part of most refinance transactions. Costs vary by state.",{"type":107,"tag":122,"props":658,"children":659},{},[660,665],{"type":107,"tag":112,"props":661,"children":662},{},[663],{"type":116,"value":664},"Origination charges:",{"type":116,"value":666}," These fees cover the lender’s work to review your application, verify documents and prepare the loan for closing. Origination charges are often around 0.5%–1% of the loan amount, though they can vary.",{"type":107,"tag":122,"props":668,"children":669},{},[670,675],{"type":107,"tag":112,"props":671,"children":672},{},[673],{"type":116,"value":674},"Prepaid taxes or insurance:",{"type":116,"value":676}," At closing, you may be asked to prepay part of your property taxes or homeowners insurance. This isn’t an added fee—it’s simply collecting amounts that would be due later, often to set up or top off an escrow account. ",{"type":107,"tag":108,"props":678,"children":679},{},[680],{"type":116,"value":681},"Many homeowners find it helpful to compare the upfront costs of refinancing with the potential savings over time. This can help you estimate a break-even point: the point at which the money you save begins to outweigh what you paid to refinance. For example, if refinancing costs $6,000 and lowers your monthly payment by $150, it would take about 40 months for the savings to cover the upfront cost.",{"title":7,"searchDepth":178,"depth":178,"links":683},[684],{"id":600,"depth":363,"text":603},{"data":686,"body":687,"excerpt":-1,"toc":695},{"title":7,"description":7},{"type":104,"children":688},[689],{"type":107,"tag":690,"props":691,"children":694},"faq",{":faqs":692,"headline":693},"[{\"question\":\"How does refinancing a mortgage work from start to finish?\",\"answer\":\"Refinancing a mortgage works by replacing your current home loan with a new one. The new loan pays off the existing balance, and you move forward with updated terms such as a new rate, loan length or structure. There are lots of different options for refinancing available.\"},{\"question\":\"How does refinancing a mortgage work if I already have equity?\",\"answer\":\"When you have equity, refinancing allows lenders to base the new loan on your home’s current value rather than the original purchase price. This equity can support options like adjusting loan terms or, in some cases, accessing cash through a cash-out refinance.\"},{\"question\":\"How does refinancing a mortgage work compared to getting a first mortgage?\",\"answer\":\"The process is similar to getting an initial mortgage. Lenders review your credit, income, debt and home value, and you’ll go through application, underwriting and closing. The main difference is that refinancing replaces an existing loan instead of funding your home purchase.\"},{\"question\":\"How does refinancing a mortgage work once it closes?\",\"answer\":\"After closing, your new mortgage takes over, and your old loan is paid off. You’ll begin making payments based on the new terms, and any previous mortgage obligations end.\"}]","Mortgage refinancing FAQs",[],{"title":7,"searchDepth":178,"depth":178,"links":696},[],{"data":698,"body":699,"toc":705},{"title":7,"description":86},{"type":104,"children":700},[701],{"type":107,"tag":108,"props":702,"children":703},{},[704],{"type":116,"value":86},{"title":7,"searchDepth":178,"depth":178,"links":706},[],{"data":708,"body":710,"toc":716},{"title":7,"description":709},"Citi is #1 in Customer Satisfaction with Mortgage Origination - J.D. Power",{"type":104,"children":711},[712],{"type":107,"tag":108,"props":713,"children":714},{},[715],{"type":116,"value":709},{"title":7,"searchDepth":178,"depth":178,"links":717},[],{"data":719,"body":721,"toc":738},{"title":7,"description":720},"For J.D. Power 2025 award information, visit jdpower.com/awards.",{"type":104,"children":722},[723],{"type":107,"tag":108,"props":724,"children":725},{},[726,728,736],{"type":116,"value":727},"For J.D. Power 2025 award information, visit ",{"type":107,"tag":143,"props":729,"children":733},{"href":730,"rel":731},"https://www.jdpower.com/business/awards",[732],"nofollow",[734],{"type":116,"value":735},"jdpower.com/awards",{"type":116,"value":737},".",{"title":7,"searchDepth":178,"depth":178,"links":739},[],{"_path":741,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"slug":99,"content":742,"_id":743,"_type":78,"title":744,"_source":80,"_file":745,"_extension":78},"/disclosures/default","This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.\n\nTerms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.","content:disclosures:default.json","Default","disclosures/default.json",{"_path":747,"_dir":84,"_draft":6,"_partial":6,"_locale":7,"content":748,"slug":749,"_id":750,"_type":78,"title":751,"_source":80,"_file":752,"_extension":78},"/disclosures/spanish-language-disclosure","\u003Csup>†\u003C/sup>Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.\n\n\u003Cspan lang=\"es\">Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.\u003C/span>","spanish-language-disclosure","content:disclosures:spanish-language-disclosure.json","Spanish Language Disclosure","disclosures/spanish-language-disclosure.json",{"data":754,"body":756,"toc":767},{"title":7,"description":755},"This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.",{"type":104,"children":757},[758,762],{"type":107,"tag":108,"props":759,"children":760},{},[761],{"type":116,"value":755},{"type":107,"tag":108,"props":763,"children":764},{},[765],{"type":116,"value":766},"Terms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.",{"title":7,"searchDepth":178,"depth":178,"links":768},[],{"data":770,"body":772,"toc":795},{"title":7,"description":771},"†Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":104,"children":773},[774,785],{"type":107,"tag":108,"props":775,"children":776},{},[777,783],{"type":107,"tag":778,"props":779,"children":780},"sup",{},[781],{"type":116,"value":782},"†",{"type":116,"value":784},"Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":107,"tag":108,"props":786,"children":787},{},[788],{"type":107,"tag":789,"props":790,"children":792},"span",{"lang":791},"es",[793],{"type":116,"value":794},"Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.",{"title":7,"searchDepth":178,"depth":178,"links":796},[],{"data":798,"body":800,"excerpt":-1,"toc":815},{"title":7,"description":799},"Thinking about refinancing? Our Mortgage Refinance Calculator can help you decide if it's worth it.",{"type":104,"children":801},[802],{"type":107,"tag":108,"props":803,"children":804},{},[805,807,813],{"type":116,"value":806},"Thinking about refinancing? Our ",{"type":107,"tag":143,"props":808,"children":810},{"href":809},"/calculators/refinance/",[811],{"type":116,"value":812},"Mortgage Refinance Calculator ",{"type":116,"value":814},"can help you decide if it's worth it.",{"title":7,"searchDepth":178,"depth":178,"links":816},[],[818,879,923,969,1007,1050,1109],{"_path":819,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":821,"l1":820,"linkNav":822,"heroMedia":826,"teaserImage":829,"slug":831,"sections":832,"date":851,"subheadline":852,"headline":853,"isFeatured":6,"tags":854,"link":857,"seo":860,"hasSectionNavigation":27,"_id":863,"_type":78,"title":864,"_source":80,"_file":865,"_extension":78,"tagsDetails":866},"/articles/refinancing/can-you-refinance-with-bad-credit","refinancing",4,{"introText":823,"text":824,"to":825},"Ready for the next step?","Connect with a Citi Specialist","/contact",{"landscape":827,"portrait":828},"/media/can-i-refinance-w-bad-credit-mobile-768x512-1-.jpg","/media/can-i-refinance-w-bad-credit-desktop-520x638-1-.jpg",{"src":830},"/media/can-i-refinance-w-bad-credit-teaser-500x500-1-.jpg","can-you-refinance-with-bad-credit",[833,836,839,842,845,848],{"title":834,"content":835},"How refinancing works with poor credit","Refinancing means replacing your current mortgage with a new one, often to secure better terms such as a lower interest rate, reduced monthly mortgage payments or a shorter loan term. The process is much like getting your original mortgage: you’ll choose a lender, submit financial documents and review a loan estimate before moving forward (for a deeper dive into the full process, check out our [guide to refinancing](/refinancing/)).\n\nAs part of the approval process, lenders look at several factors, including your credit score, income, [debt-to-income ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/) and how much equity you have in your home. In general, a [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/) below 620 is considered too low to qualify for most [conventional loans](/home-loans/conventional-loan/). However, there are options such as [FHA loans,](/home-loans/fha-loan/) [VA loans](/home-loans/va-loan/) and [USDA loans](/home-loans/usda-loan/) that are more flexible for borrowers with lower scores.\n\nA less-than-ideal score doesn’t automatically take refinancing off the table. If you’ve consistently made your mortgage payments, improved your overall financial picture, reduced your credit card debt or built equity since buying your home, you may still be eligible—especially through programs tailored to credit-challenged borrowers. Some lenders even offer bad credit mortgage refinance options that account for your [closing costs](/home-buying/articles/closing-costs/) and help to lower long-term expenses.\n\n::quote{icon=\"Mortgage\" quote=\"Your credit score doesn’t tell the whole story. Lenders also consider your equity, income and how consistently you’ve made mortgage payments.\"}\n::",{"title":837,"content":838},"Options for homeowners with bad credit","A credit score below 620 can make traditional refinancing more challenging, but it doesn’t shut you out. Several programs are designed to work with lower scores, alternative documentation or unique financial situations.\n\n::inline-table{tableLayout=\"waffle\" :headers='[{\"value\":\"Loan Type\"},{\"value\":\"Who It’s For\"},{\"value\":\"Key Features & Trade-Offs\"}]' :rows='[{\"column\":{\"valueOne\":\"FHA Streamline Refinance\",\"valueTwo\":\"Homeowners with an existing FHA loan (typically ~580+)\",\"valueThree\":\"No appraisal, minimal paperwork and flexible credit rules. Must already have an FHA loan; mortgage insurance may apply.\"}},{\"column\":{\"valueOne\":\"VA IRRRL\",\"valueTwo\":\"Veterans, active-duty service members or eligible spouses with a VA loan\",\"valueThree\":\"Often, no credit check or income verification; low funding fee. Must already have a VA loan; small closing costs still apply.\"}},{\"column\":{\"valueOne\":\"Fannie Mae RefiNow / Freddie Mac Refi Possible\",\"valueTwo\":\"Low- to moderate-income borrowers with conventional loans\",\"valueThree\":\"Reduced fees, lower rates and more credit flexibility. Income limits and recent payment history requirements apply.\"}},{\"column\":{\"valueOne\":\"Non-Qualified Mortgage Loans\",\"valueTwo\":\"Borrowers with unique income sources or damaged credit\",\"valueThree\":\"Accepts alternative documentation like bank statements. Higher rates and fees; fewer lenders offer them.\"}}]'}\n::\n\n*Requirements and terms vary by program/lender and are subject to change.*",{"title":840,"content":841},"Tips to improve your approval odds","Even if your credit score isn’t where you want it to be, a few proactive steps can make a difference.\n\n* **Check your credit reports.** Spot and dispute errors or outdated information that may be dragging down your score.\n* **Pay down credit card balances.** This lowers your [debt-to-income ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/) and can give your score a small boost.\n* **Consider a co-borrower.** A partner or family member with stronger credit can strengthen your application and help you lock in better terms.\n* **Talk to the right lenders.** Some lenders specialize in helping borrowers with credit challenges and may offer more flexible programs or documentation options. Start with your current lender if you’ve built a strong payment history.",{"title":843,"content":844},"Pros and cons of refinancing with bad credit","Refinancing with a low credit score isn’t always easy, but it can still be worth exploring. As with any major mortgage decision, it’s important to weigh the benefits against the costs before you pull the trigger.\n\nHere’s a snapshot of what to expect:\n\n::content-table{:useBullets=false headline=\"Pros & Cons of Refinancing with Bad Credit\" :tableData='[{\"row\":[{\"column\":\"Pros\"},{\"column\":\"Cons\"}]},{\"row\":[{\"column\":\"Lower monthly payments: Refinancing can reduce your monthly costs by extending your loan term or securing a better rate.\"},{\"column\":\"Higher interest rates: Borrowers with lower credit scores often face higher rates, which can limit total savings.\"}]},{\"row\":[{\"column\":\"Switch to fixed-rate loans: Moving from an adjustable-rate mortgage (ARM) to a fixed rate offers more predictable payments and stability.\"},{\"column\":\"Limited loan options: Fewer lenders work with credit-challenged borrowers, which may narrow your choices.\"}]},{\"row\":[{\"column\":\"Access to home equity: If you’ve built equity, refinancing can free up cash for debt consolidation or other needs.\"},{\"column\":\"Potentially higher fees: Closing costs, mortgage insurance or discount points may be higher with a lower credit profile.\"}]}]' support=\"\"}\n::\n\nNot sure if refinancing is right for you? Try our [Mortgage Refinance Calculator](/calculators/refinance/) to run the numbers.",{"title":846,"content":847},"When does refinancing make sense?","Refinancing isn’t only about chasing the lowest rate. It can be a strategic move to create more breathing room in your budget, gain payment stability or tap into equity for important expenses.\n\nIt can also play a role in rebuilding credit. By managing your new loan responsibly and making on-time payments, you show lenders you’re a lower risk. Over time, that track record can help boost your credit score, unlocking better terms and more opportunities down the road.",{"title":849,"content":850,"hideTitle":27},"Refinancing with bad credit FAQs","\n\n::faq{headline=\"Refinancing with bad credit FAQs\" :faqs='[{\"question\":\"Can I refinance if my credit score is under 600?\",\"answer\":\"Possibly. While it’s more challenging, several programs are designed for borrowers in this range. Government-backed loans, like FHA and VA loans, often have flexible requirements Also, some non-qualified mortgage lenders offer options for borrowers with scores under 600.\"},{\"question\":\"What’s the minimum credit score needed to refinance?\",\"answer\":\"It depends on the loan type. Conventional loans typically require a score of 620 or higher, but FHA and VA programs often accept lower scores, sometimes as low as 500—especially if other financial factors, like income and equity, are strong.\"},{\"question\":\"Will refinancing improve my credit score?\",\"answer\":\"Refinancing alone won’t guarantee an increase in your credit score. Positive changes may occur if you consistently make on-time payments, but your score is also affected by other factors such as existing debt, credit utilization and your broader payment history.\"},{\"question\":\"Can I use a co-signer to refinance?\",\"answer\":\"Yes. A co-signer with stronger credit can strengthen your application and may help you qualify for a lower interest rate or better terms.\"}]'}\n::","2025-09-09T09:14:00.000Z","A low credit score doesn’t automatically close the door on refinancing. You still have options, though the process and rates may differ from borrowers with stronger credit history. This guide walks through how to refinance with poor credit, loan programs designed for credit-challenged borrowers and tips to improve your approval odds—all to help you decide if it’s the right move for your financial goals. You’ll also learn how to compare a mortgage refinance for bad credit with other financing options and find the best lenders for bad credit based on your needs.","Can I refinance with bad credit?",[820,855,856],"credit-score","financial-planning",{"introText":858,"body":859,"text":824,"to":825},"Wondering what your refinance options are?","Let’s talk through them together.",{"title":861,"description":862},"Can You Refinance With Bad Credit? | Mortgage.com","Wondering if you can refinance with bad credit? Learn your options, how credit impacts refinancing, and ways to improve your chances.","content:articles:refinancing:can-you-refinance-with-bad-credit.json","Can You Refinance With Bad Credit","articles/refinancing/can-you-refinance-with-bad-credit.json",[867,871,875],{"label":868,"slug":856,"seo":869},"Financial Planning",{"description":870},"Learn more about financial planning with helpful articles, tools, and guides to support your homeownership journey.",{"label":872,"slug":855,"seo":873},"Credit Score",{"description":874},"Understand how your credit score impacts your ability to qualify for a home loan and how to improve it.",{"label":876,"slug":820,"seo":877},"Refinancing",{"description":878},"Learn more about refinancing with helpful articles, tools, and guides to support your homeownership journey.",{"_path":880,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":821,"l1":820,"linkNav":881,"heroMedia":882,"teaserImage":885,"slug":887,"sections":888,"date":904,"subheadline":905,"headline":906,"isFeatured":6,"tags":907,"link":909,"seo":912,"hasSectionNavigation":27,"_id":915,"_type":78,"title":916,"_source":80,"_file":917,"_extension":78,"tagsDetails":918},"/articles/refinancing/when-to-refinance",{"introText":823,"text":824,"to":825},{"landscape":883,"portrait":884},"/media/when-to-refinance-in-highrate-market-mobile-768x512.jpg","/media/when-to-refinance-in-highrate-market-desktop-520x638.jpg",{"src":886},"/media/when-to-refinance-in-highrate-market-teaser-500x500.jpg","when-to-refinance",[889,892,895,898,901],{"title":890,"content":891},"When does it make sense to refinance a mortgage?","When to refinance a house depends on your personal situation, not just market rates. Refinancing in a high-rate environment can still be a wise choice if:\n\n* Your credit score has significantly improved.\n* You've built enough equity to remove [private mortgage insurance (PMI).](/home-buying/articles/pmi-home-loan/)\n* You're switching from an [adjustable-rate mortgage](/home-loans/adjustable-rate/) to a [fixed rate.](/home-loans/fixed-rate/)\n* You want to shorten your loan term or responsibly tap into equity.\n\n::quote{icon=\"Mortgage\" quote=\"Even in a high-rate market, refinancing could still lower your costs or help you reach your financial goals—if the timing is right.\"}\n::\n\nIn essence, the focus should be on enhancing your overall financial position rather than simply pursuing the lowest rate.\n\n::callout{title=\"Understanding interest rates\" body=\"When the Federal Reserve changes its benchmark federal funds rate, it doesn’t directly set [mortgage rates](/rates/)—but it still influences them. [Adjustable-rate mortgages](/home-loans/adjustable-rate/) (ARMs) and [home equity lines of credit](/home-loans/heloc/) (HELOCs) often respond quickly because they [track short-term rates](/rates/articles/federal-reserve-interest-rates/). [Fixed-rate mortgages](/home-loans/fixed-rate/) follow longer-term trends, often linked to the 10-year Treasury yield, which shifts based on investor expectations for Fed policy and inflation.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::",{"title":893,"content":894},"Factors that impact when you should refinance","By understanding the key factors that affect the benefits of refinancing, you can make a confident decision about when to refinance home loan agreements.\n\n### [Interest rates](/rates/articles/federal-reserve-interest-rates/) vs. your current rate\n\nCompare your current mortgage rate with today’s averages. Even a reduction of 0.5% to 1% can lead to major long-term savings.\n\n### [Credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/)\n\nIf your credit score has improved since you took out your original mortgage, you may now qualify for better rates and terms.\n\n### [Debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/)\n\nLenders consider your DTI when reviewing refinance applications. A lower DTI may give you access to better loan options.\n\n### [Home equity](/home-loans/home-equity/)\n\nIf you’ve built 20% or more in equity, you could eliminate PMI and lower your monthly payments.\n\n### Loan term remaining\n\nIf you plan to stay in your home long enough to reach the break-even point, which is when monthly savings surpass closing costs, refinancing can make sense. If you plan to move soon, it may not be worth it.\n\n::quote{icon=\"Mortgage\" quote=\"Did you know that dropping your mortgage rate by just 1% could save you tens of thousands of dollars over the life of your loan?\"}\n::",{"title":896,"content":897},"How to know if refinancing makes financial sense","A simple way to evaluate refinancing is by calculating your break-even point: the time it takes for your savings to offset closing costs.\n\n### Example Break-Even Calculation\n\n* **Current payment:** $2,000/month\n* **New payment:** $1,850/month\n* **Monthly savings:** $150\n* **Closing costs:** $4,500\n\n**Break-even:** $4,500 ÷ $150 = **30 months** (2.5 years)\n\n**What it means:** If you plan to stay in your home longer than 2.5 years, refinancing could save you money. Otherwise, it might not justify the upfront cost.\n\nUse our [Mortgage Refinance Calculator](/calculators/refinance/) to input your numbers and determine when you’ll break even—and how much you could save over the life of your loan.",{"title":899,"content":900,"hideTitle":27},"When to refinance a house—and when to wait","\n\n::content-table{:useBullets=false headline=\"When to refinance a house—and when to wait\" body=\"A quick look to help you decide\" :tableData='[{\"row\":[{\"column\":\"When Refinancing Could Help\"},{\"column\":\"When Not to Refinance\"}]},{\"row\":[{\"column\":\"Switching from an ARM to a fixed rate\"},{\"column\":\"Planning to sell or move soon\"}]},{\"row\":[{\"column\":\"Shortening your loan term\"},{\"column\":\"Low equity or poor credit\"}]},{\"row\":[{\"column\":\"Consolidating debt via cash-out refi\"},{\"column\":\"Break-even point is too far off\"}]},{\"row\":[{\"column\":\"Removing PMI after building equity\"},{\"column\":\"High fees outweigh benefits\"}]}]'}\n::",{"title":902,"hideTitle":27,"content":903},"Refinancing in a high-rate market FAQs","\n\n::faq{headline=\"Refinancing in a high-rate market FAQs\" :faqs='[{\"question\":\"When is a good time to refinance your home?\",\"answer\":\"Refinancing makes sense when it reduces payments, improves your loan terms or aligns with your financial goals. It’s important to ensure you’ll stay in your home long enough to recoup the closing costs through these savings, which means reaching the break-even point.\"},{\"question\":\"Is refinancing worth it if rates are still high?\",\"answer\":\"Yes, but it depends on your individual situation. Refinancing can still be worthwhile if your financial situation has improved, especially if your credit or equity has increased. It can also be beneficial if you’re switching from a less stable loan type, like an adjustable-rate mortgage (ARM) to a fixed-rate loan that offers more predictability. \"},{\"question\":\"How much lower should the rate be to justify refinancing?\",\"answer\":\"A common rule of thumb is a rate drop of 1%, but it’s more insightful to conduct a break-even analysis. This involves comparing the money saved on monthly payments to the costs of refinancing to determine how long it will take to recover those costs, giving you a clearer understanding of the potential benefits. \"}]'}\n::","2025-09-04T09:09:00.000Z","High interest rates can make refinancing seem like a bad move—but that’s not always the case. In some situations, when to [refinance your home](/refinancing/) depends on more than just market rates. Refinancing may still help you lower costs, improve loan terms or meet other financial goals. This guide outlines [when to refinance a mortgage](/refinancing/articles/when-to-refinance-mortgage/) so you can evaluate your break-even point and other key factors before making a move.","When to refinance in a high-rate market",[820,908],"home-loans",{"introText":910,"body":911,"text":824,"to":825},"Still unsure if refinancing is right for you?","Let’s talk through it together.",{"description":913,"title":914},"When does it make sense to refinance a mortgage in a high rate market? Learn how to evaluate your situation, when to refinance your home, and when to wait.","When to Refinance Your Mortgage in a High-Rate Market","content:articles:refinancing:when-to-refinance.json","When To Refinance","articles/refinancing/when-to-refinance.json",[919,875],{"label":920,"slug":908,"seo":921},"Home Loans",{"description":922},"Explore resources about home loans—including types, requirements, and how to choose the right mortgage option.",{"_path":924,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":925,"l1":820,"linkNav":926,"heroMedia":927,"teaserImage":930,"slug":932,"disclosure":99,"sections":933,"date":952,"subheadline":953,"headline":954,"isFeatured":6,"tags":955,"link":957,"seo":960,"hasSectionNavigation":27,"_id":963,"_type":78,"title":964,"_source":80,"_file":965,"_extension":78,"tagsDetails":966},"/articles/refinancing/how-much-does-it-cost-to-refinance-a-mortgage",9,{"introText":823,"text":824,"to":825},{"landscape":928,"portrait":929},"/media/how-much-does-it-cost-to-refinance-mobile-768x512.jpg","/media/how-much-does-it-cost-to-refinance-desktop-520x638.jpg",{"src":931},"/media/how-much-does-it-cost-to-refinance-teaser-500x500.jpg","how-much-does-it-cost-to-refinance-a-mortgage",[934,937,940,943,946,949],{"title":935,"content":936},"What is the average cost to refinance a mortgage?","Let’s get right to the main question: how much does it cost to refinance a house? \n\nMost homeowners will pay between 2% and 6% of their remaining loan balance. On a typical mortgage, that’s about $2,000 to $7,500 in closing costs. The exact amount depends on a few key factors, like your loan size, credit profile, income, location and the lender you choose.  \n\nEvery lender has its own fee structure, and third-party costs can vary by state. And here’s the kicker: these costs are usually due at closing, on top of your regular monthly mortgage payment. Some lenders may offer options to roll them into your new loan, but they’re still part of the overall cost. These costs are typically due at closing, on top of your monthly mortgage payment.\n\nWant a clearer picture of what it might cost you to refinance? Use our [Mortgage Refinance Calculator](/calculators/refinance/) to get a personalized estimate.",{"title":938,"content":939},"Breakdown of refinance costs","Refinancing your mortgage means replacing your current loan with a new one, and just like your original mortgage, it comes with a few upfront costs. Think of it as hitting the reset button—paperwork and all. Most refinance costs fall into three main buckets: \n\n* **Lender fees:** These are the charges your lender collects for processing your new loan. Common examples include application fees, underwriting and loan origination fees. \n* **Third-party fees**: These go to outside professionals who help move the process along, such as appraisers, credit report providers, title companies and notaries. \n* **Prepaid costs**: This bucket includes property taxes, homeowner’s insurance and daily interest charges you pay up front to get everything squared away. \n\nSome fees are standard, while others vary based on your lender, loan size or location. And here’s a pro tip: a few of them are negotiable. Knowing the average refinance fees helps you spot inflated costs, compare lender offers with confidence and make sure you’re getting the best deal possible. \n\n### **Lender fees: origination, application & more** \n\nThese are the fees charged directly by your lender—the cost of getting your new loan off the ground. \n\nHere’s what’s typically included: \n\n* **Loan origination fee:** This is the big one. It’s what your lender charges to evaluate and process your loan. Most fall between 0.5% and 1% of your total loan amount.\n* **Application fee:** Some lenders charge a fee just to start the process of opening your file, pulling your credit and getting things underway for your refinance. This fee can range from $75 to $500, depending on the lender. Think of it as the “kickoff” fee that gets the whole process moving.\n* **Underwriting fee:** This covers the cost of the underwriting team that reviews your financials and decides whether you qualify. It’s the engine behind the loan decision, and it typically ranges from $400 to $900. \n\nThese fees can vary a lot by lender, and some may even waive one or more, especially if you have great credit or bring a competing offer to the table. (Pro tip: it never hurts to ask.)\n\n### Typical lender fees\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Fee\"},{\"value\":\"Range\"}]' :rows='[{\"column\":{\"valueOne\":\"Loan origination fee\",\"valueTwo\":\"0.5%-1% of loan amount\",\"valueThree\":\"\"}},{\"column\":{\"valueOne\":\"Application fee\",\"valueTwo\":\"$75-$500\"}},{\"column\":{\"valueOne\":\"Underwriting fee\",\"valueTwo\":\"$400-$900\"}}]'}\n::\n\n**Third-party fees: appraisal, title, credit check** \n\nNot all refinance costs come from your lender. Some fees go to outside professionals who handle key steps in the process. These third-party charges are typically passed on to you as part of your closing costs. Here’s a quick look at the most common ones:  \n\n* **Appraisal:** A licensed appraiser will estimate your home’s current market value, so the lender knows how much it’s worth. You can expect to pay $300 to $600. \n* **Title search and insurance:** A title search confirms that you legally own your home and that there are no claims or liens on it. Title insurance protects the lender (and you) if a title issue pops up later. Typical costs range from $400 to $900. \n* **Credit report fee:** This covers the cost of pulling your credit report during the application process. This usually runs between $25 and $50. \n* **Recording fees:** These are charged by your local city or county to officially record your new mortgage in public records. The exact amount varies depending on your location. \n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"Ask for a refinance loan closing estimate early on. It will itemize both lender and third-party fees, making it easier to compare offers side by side.\"}\n::\n\n### **Prepaid costs: taxes, interest & escrow** \n\nPrepaid costs are expenses you pay in advance to ensure your mortgage is set up smoothly from day one. These aren’t lender profit—they’re just part of managing your loan properly. Still, they do affect how much cash you’ll need at closing. \n\nHere’s what to look for: \n\n* **Prepaid property taxes:** Depending on your local tax schedule, you may need to pay a portion of your property taxes in advance to stay current. \n* **Prepaid interest:** This covers the interest due between your closing date and your first mortgage payment. It helps bridge the gap so that your loan starts on the right schedule.  \n* **Initial escrow contribution:** If your lender manages your property taxes and insurance, which is common, you’ll likely need to make an initial deposit (usually a few months’ worth) into your new escrow account. \n\nThese amounts can vary by location and your closing date, but they’re an important part of your total refinance cost.",{"title":941,"content":942},"How much does it cost to refinance a $300,000 mortgage?","Still wondering what it all adds up to? Let’s look at a real-world example. \n\nSays you’re refinancing a $300,000 mortgage. You have strong credit, and your fees are in the average range. In that case, your total closing costs might come out to around 2% of the loan amount—or $6,000. Here’s how that may break down: \n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Fee Type\"},{\"value\":\"Estimated Cost\"}]' :rows='[{\"column\":{\"valueOne\":\"Loan origination\",\"valueTwo\":\"$2,000\"}},{\"column\":{\"valueOne\":\"Application & Underwriting\",\"valueTwo\":\"$800\"}},{\"column\":{\"valueOne\":\"Appraisal\",\"valueTwo\":\"$400\"}},{\"column\":{\"valueOne\":\"Title & Recording Fees\",\"valueTwo\":\"$800\"}},{\"column\":{\"valueOne\":\"Credit Report\",\"valueTwo\":\"$30\"}},{\"column\":{\"valueOne\":\"Prepaid Taxes & Interest\",\"valueTwo\":\"$1,970\"}},{\"column\":{\"valueOne\":\"Estimated Total\",\"valueTwo\":\"$6,000 (2%)\"}}]'}\n::\n\nKeep in mind: This is just one scenario. Your actual costs might be higher or lower depending on your lender, where you live and how you structure your loan. \n\n  \n\n::callout{title=\"What is a cash-out refinance?\" body=\"A cash-out refinance replaces your existing mortgage with a new, larger one and lets you take the difference in cash. It’s a way to tap into your home’s equity and use it for things like home renovations, debt consolidation or other major expenses. Your total loan balance goes up and you’ll still pay closing costs, but you walk away with cash in hand while keeping just one mortgage payment.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::",{"title":944,"content":945},"Can you refinance without closing costs? ","If you remember one thing from this article, let it be this: you have options. Refinancing costs aren’t always set in stone, and with a few smart moves, you can significantly reduce what you pay at closing. \n\nHere are some of the best ways to save: \n\n1. **Shop around.** Refinance fees and interest rates can vary a lot from one lender to the next. Get quotes from multiple lenders and be sure to forget to compare current mortgage rates before you start. \n2. **Ask about lender incentives.** Some lenders run promotions—like reduced fees, cashback at closing or discounted rates—to win your business. You won’t know unless you ask. \n3. **Negotiate.** See a charge that looks vague or high? Ask for a breakdown—or ask to have it removed. Lenders may be willing to match or beat competitor offers, especially if you have a Loan Estimate to show. \n4. **Consider points and credits.** Want a lower interest rate? You can pay discount points up front. Prefer lower out-of-pocket costs? Ask about lender credits, which reduce your closing costs in exchange for a slightly higher rate. \n5. **Improve your credit score.** Even a modest bump can unlock better rates and lower fees. \n6. **Time it right.** Mortgage rates fluctuate daily. If you're not in a rush, waiting for a rate drop could lead to big savings over the life of your loan.\n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"If you plan to refinance again or move within 5 years, paying higher upfront costs might not be worth it.\"}\n::",{"title":947,"content":948},"How to lower the cost to refinance","If you remember one thing from this article, let it be this: you have options. Refinancing costs aren’t always set in stone, and with a few smart moves, you can significantly reduce what you pay at closing. \n\nHere are some of the best ways to save: \n\n1. **Shop around.** Refinance fees and interest rates can vary a lot from one lender to the next. Get quotes from multiple lenders and be sure to forget to compare current mortgage rates before you start. \n2. **Ask about lender incentives.** Some lenders run promotions—like reduced fees, cashback at closing or discounted rates—to win your business. You won’t know unless you ask. \n3. **Negotiate.** See a charge that looks vague or high? Ask for a breakdown—or ask to have it removed. Lenders may be willing to match or beat competitor offers, especially if you have a Loan Estimate to show. \n4. **Consider points and credits.** Want a lower interest rate? You can pay discount points up front. Prefer lower out-of-pocket costs? Ask about lender credits, which reduce your closing costs in exchange for a slightly higher rate. \n5. **Improve your credit score.** Even a modest bump can unlock better rates and lower fees. \n6. **Time it right.** Mortgage rates fluctuate daily. If you're not in a rush, waiting for a rate drop could lead to big savings over the life of your loan.",{"title":950,"hideTitle":27,"content":951},"Refinancing costs FAQs ","::faq{headline=\"Refinancing costs FAQs\" :faqs='[{\"question\":\"How much does it cost to refinance a mortgage in 2025?\",\"answer\":\"Refinancing typically costs between 2% and 6% of your loan amount, which works out to $2,000 to $7,500 for the average homeowner.\"},{\"question\":\"What fees are required when refinancing?\",\"answer\":\"You can expect to pay: lender fees (origination, application, underwriting), third-party fees (appraisal, title, credit check, recording), and prepaid costs (taxes, insurance, interest, escrow contributions)\"},{\"question\":\"Can I refinance without paying closing costs?\",\"answer\":\"Yes—with a no-closing-cost refinance, the lender covers the upfront fees by charging you a slightly higher interest rate or adding the costs to your loan balance. It reduces what you pay today, but may increase the total amount of interest over time.\"},{\"question\":\"Are refinance fees negotiable?\",\"answer\":\"Some are. Lender fees, like origination, application and underwriting, are often negotiable. Third-party fees (such as title or appraisal) are less flexible, but shopping around and comparing loan estimates can help you find the most competitive offer.\"},{\"question\":\"What’s the break-even point on a refinance?\",\"answer\":\"Your break-even point is how long it takes for your monthly savings to equal your upfront refinance costs. For example, if you spend $3,000 to refinance and save $150 a month, you’d break even in 20 months. Use our Refinance Calculator to crunch your numbers.\"}]'}\n::","2025-07-28T08:58:00.000-07:00","Refinancing a mortgage usually costs between 2% and 6% of your loan amount—or roughly $2,000 to $7,500 for most homeowners. These costs cover lender fees, third-party charges, and prepaid items like taxes and interest. When you refinance your mortgage, you're essentially swapping your current home loan for a new one. The goal is often to lock in a lower interest rate, decrease your monthly payment or change the loan term. It’s a common move for homeowners looking to save money over time or adjust their financial strategy. Just like your original loan, refinancing comes with closing costs. Being aware of these expenses ahead of time can help you decide if refinancing makes financial sense for your situation.","How much does it cost to refinance a mortgage?",[956,820],"refinancing-process",{"introText":958,"body":959,"text":824,"to":825}," Wondering if refinancing is worth the cost?","We’ll walk you through your options and help you understand what makes the most sense for your goals. ",{"title":961,"description":962},"How Much It Can Cost to Refinance a Mortgage | Citi Mortgage","Learn what refinancing a mortgage really costs—from lender fees to closing costs. Understand what affects your total and how to reduce your expenses.","content:articles:refinancing:how-much-does-it-cost-to-refinance-a-mortgage.json","How Much Does It Cost To Refinance A Mortgage","articles/refinancing/how-much-does-it-cost-to-refinance-a-mortgage.json",[967,875],{"label":968,"slug":956},"Refinancing Process",{"_path":970,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":821,"l1":820,"linkNav":971,"heroMedia":972,"teaserImage":975,"slug":977,"sections":978,"date":988,"subheadline":989,"headline":990,"isFeatured":6,"tags":991,"link":993,"seo":996,"hasSectionNavigation":27,"_id":999,"_type":78,"title":1000,"_source":80,"_file":1001,"_extension":78,"tagsDetails":1002},"/articles/refinancing/how-to-pay-off-your-mortgage-early",{"introText":823,"text":824,"to":825},{"landscape":973,"portrait":974},"/media/article-how-to-pay-off-your-mortgage-early-mobile-768x512.jpg","/media/article-how-to-pay-off-your-mortgage-early-desktop-520x638.jpg",{"src":976},"/media/article-how-to-pay-off-your-mortgage-early-teaser-500x500.jpg","how-to-pay-off-your-mortgage-faster",[979,982,985],{"title":980,"content":981},"Why pay off your mortgage early?","Wondering \"should I pay off my mortgage sooner?\" If you're financially able to, the answer is usually a big yes. Getting rid of debt always feels good, but paying off a mortgage early can give you more than just peace of mind.\n\n* **Build equity and own your home sooner**\\\n  You can leverage home equity to [buy a second home](/home-buying/articles/second-home/) or secure a [Home Equity Line of Credit (HELOC)](/home-loans/heloc/). If you currently pay for [private mortgage insurance](/home-buying/articles/pmi-home-loan/), you can request that PMI be taken off your mortgage bill once you reach 20% equity.\n* **Save on interest**\\\n  By shortening the loan term and reducing the amount of interest you accrue, you could potentially save tens of thousands of dollars.\n* **Spend or invest funds elsewhere**\\\n  Diversify your investments, explore entrepreneurial ventures or change careers without the burden of big monthly expenses.",{"title":983,"content":984},"9 strategies to pay off your mortgage faster","### 1. Refinance to a lower rate or shorter term\n\nMaybe you had to buy when rates were high. Fortunately, you can consider [refinancing](/refinancing/articles/rate-and-term/) your current mortgage to save money down the line. By snagging a lower interest rate or switching to a shorter term, like a 15-year mortgage, you should be able to save on interest and tackle that principal more quickly. Just be sure to account for prepayment penalties, [closing costs](/home-buying/articles/closing-costs/) and other potential fees to see if it’s worth the effort. Explore other [loan options](/home-loans/articles/types-of-loans/) or test out potential new interest rates and loan terms with our [Refinance Calculator](/calculators/refinance/) to see how much you could save.\n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"Before you jump into refinancing, do the math to make sure your savings will outweigh the fees from appraisals, closing costs and application charges. You have to stay in your home past the break-even point, which is when the savings from refinancing start to outweigh the costs.\"}\n::\n\n### 2. Make extra payments toward principal\n\nOkay, here’s a simple trick: Make extra mortgage payments. When these payments go directly towards your principal balance, they can reduce your loan term. Even small payments can add up over time. This helps reduce the total interest you’ll pay and gets you to the finish line faster.\n\nSet aside a small portion of your monthly budget for extra mortgage payments. You could even start giving your mortgage a \"yearly bonus\" to chip away at the principal. Believe it or not, making just one extra annual mortgage payment on a standard 30-year mortgage could cut up to seven years off your loan term. Just be sure to tell your lender to apply it toward the *principal* rather than future payments or interest.\n\n### 3. Round up your monthly payments\n\nStill wondering how small changes can make big waves? Try rounding up your mortgage payments each month to the nearest $100. For example, if your mortgage is $2,531.57, you'd round up to $2,600. That extra $68.43 toward the principal every month could save you over $7,000 on a 15-year loan at 6.0% interest. Again, be sure those extra payments are put toward the *principal*.\n\n### 4. Use windfalls to make lump-sum payments\n\nAnytime a big chunk of change hits your account—like a tax refund, bonus or even an unexpected inheritance—consider funneling it toward your mortgage. These windfalls can make a huge dent in your principal and help you pay off your loan faster.\n\n### 5. Try the dollar-a-month challenge\n\nHave you heard of the dollar-a-month plan? The idea is to increase your mortgage payment by one dollar each month—yup, just a dollar. So, if you're paying $1,000, next month, you'd pay $1,001, then $1,002 the following month and so on. This gradual, but steady increase can make a substantial impact without overwhelming your budget.\n\n### 6. Set up automated extra payments\n\nSet it and forget it. Automate your extra payments to ensure you stay on track without having to remember to make manual payments each month. Chat with your lender about setting up automatic payments that go directly towards your principal.\n\n### 7. Make 30-year payments on a 15-year schedule\n\nIf you qualify for a 15-year mortgage but like the lower payments of a 30-year term, why not get the best of both worlds? Go for a 30-year mortgage, but make payments like it's a 15-year plan. This way, you've got a safety net if finances get tight—you can just switch back to the lower payments until things smooth out.\n\n### 8. [Recast your mortgage after extra payments](/refinancing/articles/recasting/)\n\nEver heard of [mortgage recasting](/refinancing/articles/recasting/)? If you throw some extra cash at your mortgage, ask your lender to recast it. This  recalculates your monthly payments based on the new, lower balance. Friendly reminder: confirm that extra payments are chipping away at your *principal*, not just the interest.\n\n### 9. Explore streamline refinancing for FHA loans\n\nStreamline refinancing, which applies to [FHA loans](/home-loans/fha-loan/), could be an option if you're looking to cut down fees and paperwork while improving your mortgage terms. It's especially handy if you've already been making payments on time and your [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/) has improved since you first got your mortgage. This could qualify you for better interest rates.",{"title":986,"content":987},"Final thoughts: start today, save tomorrow","Now you know how making extra mortgage payments can pay off: it can help you build home equity faster, save on interest and free up funds to invest in other opportunities.\n\nTo get started, pick one or two of the strategies we suggested and lay the groundwork. You can forecast your potential savings with our [Refinancing Calculator](/calculators/refinance/) to explore different interest rates and loans terms. For words of wisdom tailored to your needs, a Citi Specialist is ready to help.","2025-06-06T12:32:00.000Z","Owning your home outright––what a dream. If that final mortgage payment still feels eons away, take heart. We'll show you how to pay off your mortgage early with a few financial adjustments. Let's accelerate your path to pay off your home.","How to pay off your mortgage faster",[856,820,992],"lower-payments",{"introText":994,"text":824,"to":825,"body":995},"Interested in paying off your mortgage faster?","Let a professional weigh in on the ideal payment strategy for you.",{"title":997,"description":998},"How to Pay Off Your Mortgage Faster","Learn how to pay off your mortgage faster with refinancing, extra payments, rounding up, and more strategies to build equity and save on interest.","content:articles:refinancing:how-to-pay-off-your-mortgage-early.json","How To Pay Off Your Mortgage Early","articles/refinancing/how-to-pay-off-your-mortgage-early.json",[867,1003,875],{"label":1004,"slug":992,"seo":1005},"Lower Payments",{"description":1006},"Learn more about lower payments with helpful articles, tools, and guides to support your homeownership journey.",{"_path":1008,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":1009,"l1":820,"linkNav":1010,"heroMedia":1011,"teaserImage":1014,"slug":1016,"disclosure":99,"sections":1017,"date":1036,"subheadline":1037,"headline":1038,"isFeatured":6,"tags":1039,"link":1040,"headlineUrl":7,"seo":1043,"hasSectionNavigation":27,"_id":1046,"_type":78,"title":1047,"_source":80,"_file":1048,"_extension":78,"tagsDetails":1049},"/articles/refinancing/when-to-refinance-mortgage",5,{"introText":823,"text":824,"to":825},{"landscape":1012,"portrait":1013},"/media/article-good-time-to-refinance-mobile-768x512.jpg","/media/article-good-time-to-refinance-desktop-520x638.jpg",{"src":1015},"/media/article-good-time-to-refinance-teaser-500x500.jpg","when-to-refinance-mortgage",[1018,1021,1024,1027,1030,1033],{"title":1019,"content":1020},"What does it mean to refinance a mortgage?","Refinancing a mortgage simply means replacing your current home loan with a new one that has more favorable terms. It’s a chance to hit reset on your mortgage by adjusting your interest rate, monthly payment or loan structure to meet your current financial situation or long-term goals. But knowing when to refinance is a key part of making the best decision for your situation. \n\n### How refinancing works \n\nRefinancing isn’t just an adjustment of your current loan. It involves applying for a brand new loan that pays off your existing mortgage. The new loan could come with a lower interest rate, a different term length or even a new [loan type](/home-loans/) altogether. Just like your original mortgage, you’ll need to go through an application, a credit check and pay various refinance closing costs, so you’ll want to weigh the potential savings against the upfront expenses to make sure refinancing is the right financial decision for you. \n\n### Why homeowners consider it\n\nHomeowners choose to refinance for all kinds of reasons depending on their financial goals and circumstances. Some are looking to lower their interest rate or reduce monthly payments, while others aim to switch from an adjustable-rate to a fixed-rate mortgage. Refinancing can also be a way to tap into home equity through a [HELOC](/home-loans/heloc/) or [home equity loan](/home-loans/home-equity/). But it all starts with answering the main question: when can you refinance a mortgage?",{"title":1022,"content":1023},"When is refinancing a good idea?","Just like putting an offer on a home, there is a lot to consider when asking yourself, should I refinance my mortgage? So, before you jump in, it’s worth taking a closer look at the key factors that could influence your decision. \n\n### Current refinance rates \n\nCurrent refinance rates are usually the first factor homeowners consider when thinking about refinancing, and for good reason. They fluctuate daily with market conditions, and even a small dip—such as a quarter percent—can result in major savings over time. But the rate you see advertised may not be the one you qualify for. Your actual rate will depend on your credit score, income and how much equity you’ve accumulated in your home. \n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"Mortgage rates often change after Federal Reserve meetings. Keep an eye on rate trends around these key dates for potential windows of opportunity.\"}\n::\n\n### How long you plan to stay in the home \n\nRefinancing is typically more of a long-term strategy than a short-term play. Since it usually comes with closing costs, you’ll want to stay in the home long enough to hit your break-even point for refinancing—the point at which your savings surpass what you spent on the refi. If you plan to move in a year or two, it might not be the right call. But if you’re in it for the long haul, those savings can add up over time. \n\n### Credit score and current loan terms\n\nYour credit score is more than just a number; it influences the kind of refinance deal you can land. If your credit score has recently improved, it could unlock better rates and more favorable terms, which means more money in your pocket every month. Refinancing is also a great chance to rethink your loan structure. You could consider shortening the term to pay off your home sooner or extending it for more breathing room in your monthly budget.",{"title":1025,"content":1026},"How to calculate the break-even point","Don’t worry—it’s not as confusing as it might seem. The break-even point for refinancing is the moment your monthly savings from refinancing add up to cover the cost of the refi itself. To figure it out, divide your total refinance costs by how much you’ll save each month. For example, if refinancing costs you $5,000 and you’re saving $250 a month, it’ll take 20 months to break even. If you plan to stay in your home well beyond that period, refinancing could be a smart financial decision. \n\n::callout{title=\"Refinance costs to consider\" body=\"Refinancing comes with costs, so be sure to factor in the upfront expenses. These typically include appraisal fees, credit checks, origination fees and other refinance closing costs usually amounting to 2%-6% of the new loan amount. You’ll also want to check if your current loan comes with a prepayment penalty.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::\n\n### Using a refinance calculator \n\nIf you’re looking for some decision-making help, a [mortgage refinance calculator](/calculators/refinance/) can be a game-changer. Simply plug in a few essential details like your current loan balance, interest rate, estimated refinance costs and the rate you’re being offered. The calculator will give you a side-by-side look at your new potential monthly payment and total savings. It’s a quick, easy way to see the numbers laid out before making a big move. \n\n::quote{icon=\"Mortgage\" quote=\"If you’re looking for some decision-making help, a mortgage refinance calculator can be a game-changer. \"}\n::",{"title":1028,"content":1029},"Is refinancing worth it right now?","Great question. Everyone’s financial situation is a little different, so there’s no one-size-fits-all answer regarding when to refinance. But there are a few clear indicators that can help you decide if the timing is right for you. \n\n### Scenarios where it makes sense \n\n* **You can get a lower interest rate**: If **current refinance rates** are lower than what you’re paying, refinancing could mean big savings over time. \n* **Your credit score has improved**: A stronger credit profile may qualify you for better loan terms. \n* **You want to change your loan type**: Switching from an adjustable-rate to a fixed-rate mortgage (or vice versa) can give you more financial stability—or flexibility. \n* **You need to tap into home equity**: A [cash-out refinance](/calculators/cash-out-refinance/) can help fund home improvements, pay off high-interest debt or cover major expenses. \n* **You want to pay off your loan faster**: Refinancing to a shorter term can reduce your total interest and help you become mortgage-free sooner. \n\n### When you might want to wait \n\n* **You’re planning to move soon**: If you won’t stay long enough to hit the **break-even point for refinancing**, it may cost more than it saves. \n* **Your credit needs work**: A lower score could mean higher rates and fewer benefits from refinancing. \n* **Interest rates are high**: If today’s rates are higher than your current mortgage, refinancing likely won’t make sense. \n* **You’re already far into your loan**: Restarting your mortgage clock could lead to paying more interest in the long run. \n* **You can’t cover the refinance closing costs**: Refinance expenses typically run 2%-6% of the loan amount. If that’s not in the budget, it may be better to hold off.",{"title":1031,"hideTitle":27,"content":1032},"Refinance frequently asked questions","\n\n::faq{headline=\"Refinance FAQs\" :faqs='[{\"question\":\"Should I refinance if I already have a low rate?\",\"answer\":\"If you already have a great interest rate, refinancing might not seem necessary—but it could still make sense depending on your goals. You might refinance to shorten your loan term, remove private mortgage insurance (PMI), tap into home equity or switch from an adjustable-rate mortgage to a fixed-rate loan for more stability. It’s not just about chasing a lower rate; it’s about making sure your mortgage fits your life today and where you’re headed.\"},{\"question\":\"Can I refinance with bad credit?\",\"answer\":\"Refinancing with bad credit is possible, but it can be more challenging. You may face higher interest rates or stricter loan terms, which could eat into the benefits of refinancing. Some government-backed loans, like FHA streamline refinances, offer more flexible credit requirements. If refinancing isn’t ideal right now, it might be worth spending a little time improving your credit score first. You could qualify for better terms and bigger savings down the road.\"},{\"question\":\"Does refinancing reset my loan term?\",\"answer\":\"Yes, refinancing typically resets your loan term because you’re taking out a brand new mortgage. That could mean starting another 15, 20 or 30 years of payments, depending on the term you choose. However, you can always choose a different loan term than the one you had on your original mortgage.\"}]'}\n::",{"title":1034,"content":1035},"Ready to refinance?","Speak with a Citi Mortgage Specialist to explore personalized refinance options. \n\nCall us at 877-815-6935 (TTY: 711 or other Relay Service)","2025-06-02T09:04:00.000Z","In homeownership, timing is everything—whether you’re jumping on the perfect listing, locking in a competitive rate or tapping into your home’s equity at just the right moment. The same goes for refinancing. Knowing when to [refinance](/refinancing/) your mortgage can lead to meaningful savings or a mortgage that better fits your  life.","Is now a good time to refinance?",[820,908,956],{"introText":1041,"body":1042,"text":824,"to":825},"Wondering if now is the right time to refinance?","We can help answer your questions.",{"title":1044,"description":1045},"Is Now A Good Time To Refinance?","Wondering if now is the right time to refinance your mortgage? Learn what to consider, how rates play a role, and if refinancing is worth it. ","content:articles:refinancing:when-to-refinance-mortgage.json","When To Refinance Mortgage","articles/refinancing/when-to-refinance-mortgage.json",[967,919,875],{"_path":1051,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":1052,"l1":820,"linkNav":1053,"heroMedia":1054,"teaserImage":1057,"outro":7,"slug":1059,"sections":1060,"date":1091,"subheadline":1092,"headline":1093,"isFeatured":27,"tags":1094,"link":1096,"seo":1099,"hasSectionNavigation":27,"_id":1102,"_type":78,"title":1100,"_source":80,"_file":1103,"_extension":78,"tagsDetails":1104},"/articles/refinancing/can-you-refinance-a-home-equity-loan",8,{"introText":823,"text":824,"to":825},{"landscape":1055,"portrait":1056},"/media/article-can-you-refinance-a-home-equity-loan_-mobile-768x512.jpg","/media/article-can-you-refinance-a-home-equity-loan_-desktop-520x638.jpg",{"src":1058},"/media/article-can-you-refinance-a-home-equity-loan_-teaser-500x500.jpg","can-you-refinance-a-home-equity-loan",[1061,1064,1067,1070,1073,1076,1079,1082,1085,1088],{"title":1062,"hideTitle":27,"content":1063},"Disclaimer","Disclaimer: This is not a Citi product and is provided for educational purposes only.  Citi may have different eligibility and/or product offerings than those mentioned on mortgage.com. Citi only offers [Home Equity Lines of Credit](/home-loans/heloc/).",{"title":1065,"content":1066},"How do lien positions work?","Before we dive into what a home equity loan is, let's talk a bit about loans and lien positions. So, when you take out a loan to buy a house, that loan is in the first lien position, meaning it gets paid off first if you ever default.\n\nNow, if you want to pull out some cash from your home's equity, you've got a few options: you can do a [cash-out refinance](/refinancing/articles/cash-out), which replaces your current mortgage with a new, bigger one and gives you the difference in cash. Or, you can get a [home equity loan](/home-loans/home-equity) or a [home equity line of credit (HELOC)](/home-loans/heloc), both of which sit behind your first mortgage in the second lien position.",{"title":1068,"content":1069},"What is a home equity loan?","Alright, so what exactly is a home equity loan? It's a loan where you use the equity you've built up in your home as collateral. It's like taking out a second mortgage. There are two main types of home equity loans: the standard home equity loan, which gives you a lump sum of money up front that you pay back in fixed monthly payments, and the HELOC, which works more like a credit card where you can borrow money as needed up to a certain limit and pay it back with variable interest rates.",{"title":1071,"content":1072},"Can you refinance a home equity loan?","Indeed, you can refinance a home equity loan. It's all about swapping your current loan for a new one with different terms. You'll use your new loan to clear the old one and then start making payments on the fresh loan. Don't forget—you'll still need to keep up with your primary mortgage payments, too. It's a move to consider if you're looking to snag some better loan conditions.\n\n::tip{icon=\"Bulb\" title=\"Pro Tip\" text=\"Ask your loan office to confirm whether your 2nd lien was a home equity loan or a 2nd mortgage to ensure you get the appropriate rate.\"}\n::",{"title":1074,"content":1075},"When is a good time to refinance a home equity loan?","Home equity loan refinancing requires a watchful eye. Predicting exactly when [rates](/rates) will drop is akin to timing the stock market—tricky and often unpredictable—but staying on top of economic trends and talking with your financial advisor can provide clues. Typically, interest rate changes follow broader economic patterns, so if you hear news of policy changes on the horizon, it might be time to consider refinancing. Additionally, focus on two personal financial indicators:\n\n**Increased home value**: an increase in your home's value can improve your loan-to-value ratio, potentially qualifying you for better rates.\n\n**Improved credit score**: a higher [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house) can make you appear as a lower credit risk, which might also lead to more favorable interest rates.\n\nBoth factors can significantly influence the decision and benefits of refinancing your home equity loan.",{"title":1077,"content":1078},"Is refinancing a home equity loan a good idea?","Why refinance now? Perhaps [rates](/rates) have dipped or your credit score has surged (Great job!). If you’re in a good position, why not explore your options? Here are some common reasons to refinance:\n\n* **Interest rates**: If rates are lower than when you secured your original loan, refinancing could be an option to consider.\n* **Credit score**: A boost in your credit score can unlock better loan terms. It's worth checking out what you qualify for.\n* **Loan terms**: Modifying your loan term can make your monthly payments more manageable, or even accelerate your payoff schedule.\n* **Home equity**: Refinancing might allow you to unlock the equity in your home, freeing up funds for other expenses.",{"title":1080,"content":1081,"hideTitle":27},"Pros & cons of refinancing a home equity loan","::content-table{headline=\"Pros & cons of refinancing a home equity loan\" :body='\"Refinancing your home equity loan can bring nice financial benefits, but nothing is without potential downsides. Here are some things to think about.\\n\\n\\n\"' :tableData='[{\"row\":[{\"column\":\"PROS\"},{\"column\":\"CONS\"}]},{\"row\":[{\"column\":\"Reduced interest rates: if your credit score has risen or the market has shifted since you first took out your loan, refinancing could save you some money. It’s pretty straightforward: less money paid in interest over the life of your loan means more money left in your bank account.\"},{\"column\":\"A hike in overall costs: although refinancing can reduce monthly payments, extending the term of your loan can cost more in the long run. Even if your monthly payments are lower, the longer repayment period could mean more money paid out in total.\"}]},{\"row\":[{\"column\":\"Lower monthly payments: a lower interest rate or longer loan term can reduce your monthly payments. Say you have a 10-year loan and refinance to a 15-year term. Even at the same interest rate, your monthly payments will be lower thanks to that extra five years added to your payment timeline.\"},{\"column\":\"Fees and closing costs: unfortunately, refinancing isn't free. It often involves application fees, appraisal fees and closing costs. These expenses can add up, so take the time to see whether your potential savings outweigh these upfront costs. When in doubt, ask your lender for help.\"}]},{\"row\":[{\"column\":\"A fixed rate: switching from a variable rate to a fixed rate can be a great feeling. No more ups and downs to plan for. You can just set it and forget it knowing it'll stay that way, no matter what the markets do. Good for your budget, good for your peace of mind.\"},{\"column\":\"Risk of foreclosure: just like with your original loan, your home serves as collateral. This means if payments aren’t made, you risk foreclosure. Be sure your new payment schedule works for your budget so your home stays safe and secure.\"}]}]'}\n::",{"title":1083,"content":1084},"What you’ll need before refinancing","Before going down the refinancing route, let's make sure you’re set to impress the lenders.\\\nHere’s your quick checklist to shine in the refi spotlight:\n\n* **Boost your credit:** The better your score, the sweeter the potential deal. Aim high!\n* **Equity:** When refinancing, lenders typically require you to have a certain amount of equity in your home, often at least 20%. More equity means more options. It’s that simple.\n* **Prep your paperwork:** Time to dig up those pay stubs, tax returns and bank statements. (Yes, again.)\n* **Get the lowdown on your loan:** Brush up on your current loan details and payoff amounts to know exactly where you stand. With all of this in place, you’re ready to explore your options.",{"title":1086,"content":1087},"Requirements for refinancing a home equity loan","When it comes to refinancing a [home equity loan](/home-loans/home-equity), underwriters look at several specific factors to determine whether to approve the application:\n\n* **Loan-to-value ratio (LTV)**: This is a measure of how much you currently owe on your home compared to its value. Underwriters typically prefer a lower LTV because it indicates less risk. For refinancing, a maximum LTV of 80% is common, though this can vary depending on the lender and the type of loan.\n* **Credit score**: Underwriters examine your credit score to gauge your creditworthiness. A higher score suggests you’re a lower risk with a history of managing credit responsibly. Underwriters will look for a credit score of at least 620, but for more competitive rates and terms, a score of 700 or higher is advantageous.\n* **[Debt-to-income ratio (DTI)](/home-buying/articles/what-is-a-good-debt-to-income-ratio)**: This ratio compares your total monthly debt payments to your monthly income. It helps underwriters assess whether you can afford the new loan payments. A DTI ratio of 43% or lower is typically required, though some lenders may have stricter or more lenient criteria.\n* **Income verification**: Underwriters will verify your income to ensure it is stable and sufficient to cover the new loan payments. This involves checking documents such as pay stubs, tax returns and employment verification.\n* **Employment history**: A stable and consistent employment history reassures underwriters of your ability to repay the loan. They typically look for at least two years of steady employment in the same job or field.\n* **Payment history**: Your history of making timely payments on existing debts, including your current mortgage, credit cards and other loans, is critically important. Underwriters use this information to evaluate your financial reliability.\n* **Home appraisal**: An [appraisal](/home-buying/articles/home-appraisal) provides an updated value of your home, which is essential for calculating the LTV ratio. Underwriters use this figure to ensure that the loan amount does not exceed the value of the home.\n* **Cash reserves**: Some underwriters may also check for cash reserves—the liquid assets you have on hand after closing the loan. This serves as a safety net and indicates that you can still make loan payments in case of financial difficulties.\n\nBy carefully evaluating these factors, underwriters determine the likelihood that you will be able to repay the refinanced loan, thereby minimizing the risk to the lender.",{"title":1089,"content":1090,"hideTitle":27},"FAQs","::faq{headline=\"FAQs\" :faqs='[{\"answer\":\"No, when you refinance your primary mortgage, you can do what’s called a rate & term refinance, or a cash-out refinance. A cashout refinance is in fact refinancing and accessing home equity, however, when searching for information on a home equity, you will find 2nd lien home equity loans and HELOCS. Ask your Citi Mortgage Loan Officer to learn more about the difference.\",\"question\":\"Can you use a home equity loan to refinance your primary mortgage?\"},{\"question\":\"Can you refinance a home equity loan into a HELOC?\",\"answer\":\"Yes! If you currently have a home equity loan, which is a lump sum you pay back in fixed monthly payments, you might find that switching to a home equity line of credit (HELOC) offers more flexibility. A HELOC works more like a credit card where you can borrow money as you need it, up to a certain limit, and pay it back with variable interest rates. To do this, you’ll need to go through the regular refinancing process. This involves applying for the HELOC, getting approved based on your credit and the equity in your home and then using the HELOC to pay off your existing home equity loan. It offers the flexibility to borrow and repay funds as needed, rather than being locked into fixed payments. Just keep in mind that HELOCs often come with variable interest rates, so your payments can change over time.\"},{\"question\":\"Can you refinance a HELOC into a home equity loan?\",\"answer\":\"So, what about the other way around? The answer is also yes! You can refinance a HELOC into a home equity loan if you want to switch from variable interest rates to fixed rates. If you're looking for more predictability in your monthly payments and want to lock in a steady interest rate, refinancing into a home equity loan, which comes with fixed monthly payments, might be the way to go. Additionally, if you are in the repayment period of your HELOC and need more time to pay, refinancing into a home equity loan can provide a more structured repayment plan, giving you the breathing room you need.\"}]'}\n::","2024-09-30T15:37:00.000Z","If your finances are in flux, you’re not alone. Strategies that worked yesterday may not suit your needs today. Refinancing your home equity loan might be just the reset you need to support your current goals. Let’s explore more.","Refinancing a home equity loan: what to know",[1095,820,992],"home-equity-loans",{"introText":1097,"text":824,"to":825,"body":1098},"Looking to explore your refinancing options?","Let’s chat through them together.",{"title":1100,"description":1101},"Can You Refinance A Home Equity Loan","Find out if refinancing a home equity loan is possible. Evaluate your options for refinancing a home equity loan and how to get started.","content:articles:refinancing:can-you-refinance-a-home-equity-loan.json","articles/refinancing/can-you-refinance-a-home-equity-loan.json",[1003,1105,875],{"label":1106,"slug":1095,"seo":1107},"Home Equity Loans",{"description":1108},"Explore resources about home equity loans—including types, requirements, and how to choose the right mortgage option.",{"_path":1110,"_dir":820,"_draft":6,"_partial":6,"_locale":7,"readTime":1111,"l1":820,"linkNav":1112,"heroMedia":1113,"teaserImage":1116,"outro":7,"slug":1118,"sections":1119,"date":1140,"subheadline":1141,"headline":1142,"dateModified":1143,"isFeatured":6,"tags":1144,"link":1146,"seo":1148,"hasSectionNavigation":27,"_id":1151,"_type":78,"title":1152,"_source":80,"_file":1153,"_extension":78,"tagsDetails":1154},"/articles/refinancing/rate-and-term",7,{"introText":823,"text":824,"to":825},{"landscape":1114,"portrait":1115},"/media/article-what-is-rate-and-term-refinancing_-mobile-768x512.jpg","/media/article-what-is-rate-and-term-refinancing_-desktop-520x638.jpg",{"src":1117},"/media/article-what-is-rate-and-term-refinancing_-teaser-500x500.jpg","rate-and-term",[1120,1122,1125,1128,1131,1134,1137],{"title":1062,"hideTitle":27,"content":1121},"Disclaimer: Citi may have different eligibility criteria and/or product offerings than those mentioned on mortgage.com.",{"title":1123,"content":1124},"What is rate and term refinancing?","Wishing you could make life a little easier by changing up your mortgage loan? A rate and term refinance is one option if you’re looking to score a lower monthly payment or cut down the amount of interest you’ll have to pay in the long run. It’s all about making your [mortgage](/home-loans/articles/what-is-a-mortgage) work for you, and the rate and term refi route lets you update your mortgage rate or loan length to a loan that meets your current needs. Your brand-new loan will get used to pay off your existing one, and from there, you’ll start chipping away at that new mortgage.",{"title":1126,"content":1127},"Reasons to do a rate and term refinance","Wondering why you’d go with a rate and term refinance? Let’s talk loan types. If you’ve got an [adjustable-rate mortgage](/home-loans/adjustable-rate) but you’re craving more predictability, a rate and term refinance can help you switch to a [fixed-rate mortgage](/home-loans/fixed-rate). Making that swap means your interest rate and monthly payments will stay the same—but let’s look at some of the other top reasons to take advantage of this type of [refinancing](/refinancing):\n\n::inline-three-up{:cards='[{\"headline\":\"Lower your interest rate\",\"body\":\"If interest rates have dropped since you got the keys to your new home, a rate and term refinance could help you cash in on some serious savings. Locking in a new lower rate can help you save money over the life of your loan, which can be an attractive option depending on your situation.\"},{\"body\":\"If you’ve got lower monthly mortgage payments on your mind, stretching out your repayment term can help put some money back in your pocket in the short term. But just remember, the longer you spend paying off your loan, the more you’ll shell out in interest over time.\",\"headline\":\"Reduce your monthly payment\"},{\"headline\":\"Modify your loan term \",\"body\":\"One rate and term refinance example could involve swapping your 30-year mortgage for a 15-year one. A shorter term means owning your home debt-free even sooner and could save you a bundle on interest over time. However, although you’ll build equity faster, you’ll have to deal with higher monthly payments.\"}]' headline=\"The benefits of rate & term refinancing\"}\n::",{"title":1129,"content":1130},"Rate and term refinance requirements","So, what are the general rules for rate and term refinancing? Here are a couple of things you’re going to want to know.\n\n### Credit score\n\nTo approve your refi, most lenders will want a [credit score](/home-loans/articles/how-to-buy-a-house-with-bad-credit) of 620 or higher. But, depending on the type of loan you have, that magic number could look a little different. An FHA rate and term refinance, for example, could be on the table with a score between 500 and 580 or even without a credit history at all. So, it’s worth discussing your options with a financial advisor.\n\n### Home equity\n\nFirst, a quick refresher—home equity is the amount of your home that you actually own, and you get that number by taking your home’s value and subtracting the amount you still owe on your loan.\n\nLet’s say your home is valued at $200,000. If your mortgage balance is $140,000, then your equity would be $60,000.\n\nWhat does that mean for refinancing? In general, most lenders want to work with applicants who have at least 20% equity. You can still complete a rate & term refinance if you have less than this, but keep in mind you may have [mortgage insurance](/home-buying/articles/mortgage-insurance) depending on the loan program you choose.\n\n### Debt-to-income ratio (DTI)\n\nYour [DTI](/home-buying/articles/what-is-a-good-debt-to-income-ratio) shows how much of your income goes toward your debts each month. When it comes to rate and term refinances, most lenders want that number to be 43% or lower. If it’s under 36%, that can put you in a better position to lock in more favorable rates.\n\n### Closing costs\n\nHeads up: Your new loan will likely come with [closing costs](/home-buying/articles/closing-costs). These fees will include things like your loan origination fee—that’s the cost of setting up your new loan—along with [appraisal](/home-buying/articles/home-appraisal), title insurance and lender fees. Closing costs can vary a lot, but you can usually count on them being 2% to 6% of your new loan.",{"title":1132,"content":1133},"Rate and term vs. cash-out refinance","Rate and term isn’t the only refinancing option on the block. A [cash-out refinance ](/refinancing/articles/cash-out)is another go-to for homeowners, and one that might be a good fit for your finances.\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"\"},{\"value\":\"Rate & Term Refinance\"},{\"value\":\"Cash-Out Refinance\"}]' :rows='[{\"column\":{\"valueOne\":\"Purpose\",\"valueTwo\":\"Primarily to adjust the interest rate and loan term.\",\"valueThree\":\"To turn home equity into cash for various uses.\"}},{\"column\":{\"valueOne\":\"Changes to Mortgage\",\"valueTwo\":\"Adjusts either the interest rate, the loan term or both. No increase in loan principal.\",\"valueThree\":\"Replaces the current mortgage with a new one, based on home equity, and provides the difference in cash.\"}},{\"column\":{\"valueOne\":\"Financial Impact\",\"valueTwo\":\"Can lower monthly payments, reduce interest rates or shorten the loan term.\",\"valueThree\":\"Provides cash for use (e.g., home improvements, debt payment), potentially with new loan terms and possibly a different interest rate or loan duration.\"}},{\"column\":{\"valueOne\":\"Loan Amount\",\"valueTwo\":\"Remains the same or decreases if principal is paid down.\",\"valueThree\":\"Increases due to the additional cash taken out against the equity.\"}},{\"column\":{\"valueOne\":\"Use of Funds\",\"valueTwo\":\"No cash out. The focus is on bettering the terms of the existing loan.\",\"valueThree\":\"Cash received can be used for any purpose, such as renovations, debt consolidation, etc.\"}},{\"column\":{\"valueOne\":\"Risk Level\",\"valueTwo\":\"Lower risk as it often aims to improve financial stability through better terms.\",\"valueThree\":\"Higher risk due to increased loan amount and the potential for higher debt obligations.\"}}]'}\n::\n\nNow that you’ve got the basics down, let’s take a deeper dive into how they compare.\n\n### How are they similar?\n\nFor starters, both replace the [mortgage](/home-loans/articles/what-is-a-mortgage) you have with a new one that comes with loan terms you’ll like better. The getting-started process is also pretty much the same. You’ll need to fill out an application, have your credit checked, get your [home appraised](/home-buying/articles/home-appraisal) and pay your closing costs.",{"title":1135,"content":1136},"Can you refinance your mortgage to consolidate debt?","Yes, you can refinance your mortgage to consolidate debt. This method involves taking out a new mortgage and using the extra funds to pay off other debts, such as credit card balances and other high interest debts.\n\nThis is often referred to as a debt consolidation refinance, which is similar to a cash-out refinance but with a few key differences:\n\n* **Targeted debt payoff**\\\n  Specific liabilities, as identified in your credit report, are marked to be paid off directly at closing using the cash proceeds from the new mortgage. This strategic payoff helps in reducing your debt-to-income ratio (DTI).\n* **Improved qualification chances**\\\n  By lowering your DTI, this refinancing approach can help you qualify for a new loan—something you might not have been able to do before. A lower DTI not only reduces perceived risk from the lender’s perspective but might also qualify you for a loan program with more favorable terms and a lower interest rate.\n* **Direct payment to creditors**\\\n  The cash proceeds from the debt consolidation refinance are sent directly by the lender to your creditors, not to you. This ensures that debts are paid off efficiently and reduces the risk of funds being diverted to other uses.\n* **Disbursement of remaining funds**\\\n  If there are any remaining funds after your debts have been paid, these will be provided to you. This can offer some additional financial breathing room or be used for other important expenses.\n\nThis type of refinancing can be a smart strategy to manage and reduce your overall debt burden, streamline your finances and potentially improve your financial health over the long term.\n\nConsidering refinancing your mortgage? Find out whether it's worth it with our [Mortgage Refinance Calculator](/calculators/refinance/).",{"title":1138,"content":1139,"eyebrow":7},"How to get a rate and term refinance","Ready for the scoop on how to get your refinance moving? There are a few steps you’ll have to get through before you can take advantage of those brand-new terms.\n\n### 1. Apply for the mortgage refinance\n\nJust like your first go-around, you’ll need an application under your belt. Your lender will need information on your income, credit and the details of your current mortgage, so have that close at hand.\n\n### 2. Get your new rate\n\nOnce your application gets the OK, you’ll have the chance to lock in your new interest rate. This is a big deal because it guarantees the rate you’ll get for your refinance.\n\n### 3. Get your home appraisal\n\nSome lenders want an appraisal to double-check the market value of your home, so be prepared to build that into your schedule. They want to make sure that the home you’re looking to refinance is still worth what you say it is. This means they’ll take a close look at your home to make sure it’s in good shape. They’ll also check out what other homes in your neighborhood have sold for to see if they match up.\n\n### 4. Review closing disclosures\n\nYou’re almost at the finish line, but before you close on your loan, you’ll need to go over your [closing disclosures](/home-buying/articles/closing-disclosure). These spell out your interest rates, monthly payments and closing costs. Give them a good read, and if something doesn’t add up, don’t hesitate to ask your lender.\n\n### 5. Close on your loan\n\nThe big finale: signing on the dotted line for your new loan and taking care of the closing costs.","2024-09-11T11:44:00.000Z","Also called traditional refinancing or no-cash out refinancing, but by any name, rate and term refinancing can help you tweak your terms to something more wallet-friendly. But before you get that refi rolling, here’s what you need to know.","Rate and term refinance","2026-05-14T13:30:00.000Z",[992,1145,820],"rates",{"introText":1147,"text":824,"to":825},"Wondering if refinancing is the way to go?",{"title":1149,"description":1150},"What Is A Rate And Term Refinance?","Learn how a rate and term refinance can lower your rate or adjust terms. Explore FHA options and if you can refinance while keeping the same rate.","content:articles:refinancing:rate-and-term.json","Rate And Term","articles/refinancing/rate-and-term.json",[1003,875,1155],{"label":13,"slug":1145,"seo":1156},{"description":1157},"Stay informed about rates. Explore market trends, rate factors, and tips to lock the best mortgage rate.",1780519158582]