What should you bring for a useful refinance comparison?
Bring your current mortgage statement, any second-mortgage or HELOC balance, the quote you received and how long you expect to keep the home. Tell us about a payment goal, upcoming expense or change in income before choosing a loan structure.
Ask for one scenario that keeps your current mortgage and another that makes the proposed change. If a new loan pays off other debt, compare the repayment period and total cost, not just the first month’s combined payment. Converting unsecured debt into debt secured by your home changes the risk.
Which refinance costs belong in your comparison?
Start with the written estimate for your own loan. Ask for lender charges, any discount points, valuation charges, title and settlement costs, recording charges and applicable program fees to be identified separately. There is no one closing-cost total for every Seattle refinance.
Keep prepaid interest and escrow funding in your cash plan, but distinguish them from the cost of arranging the new financing. If costs are added to the loan, show the higher starting balance. If a lender credit covers charges, compare the associated rate and longer-term cost.
| Item to confirm | Question to ask |
|---|---|
| Points or lender credit | What changes if I choose a zero-point option? |
| Third-party charges | Which costs are confirmed and which remain estimates? |
| Escrow and prepaid items | What must I pay now, and what may be refunded separately? |
| Costs added to the balance | How much more will I owe after closing? |
Make a three-column decision sheet
Put your existing loan, the proposed refinance and a keep-the-loan option side by side. Write the payment components, remaining term, closing costs paid now, costs added to the balance and balance after your expected holding period. Leave property tax and insurance assumptions the same unless there is a documented reason to change them.
Then test leaving earlier than planned. A refinance that works over five years may not work over two. If the comparison depends on refinancing again later, add a scenario where that second refinance never happens. Future credit, property value, rates and program availability are uncertain.
For a no-closing-cost offer, ask where each charge goes: paid by a lender credit, added to the loan, paid by you, or genuinely waived. Compare the written structure rather than the headline.
Calculate a simple break-even point
Divide the costs you attribute to the refinance by the monthly payment savings you expect. For an illustrative $6,000 cost and $250 monthly savings, $6,000 ÷ $250 = 24 months.
This shortcut works best when you compare similar payment components and loan structures. Separately identify escrow transfers, refundable balances, and prepaid amounts so you do not confuse temporary cash movements with the economic cost of the refinance.
| Example input | Amount |
|---|---|
| Refinance cost used in this example | $6,000 |
| Monthly savings used in this example | $250 |
| Simple break-even period | 24 months |
Look beyond a smaller payment
Restarting a longer term can reduce a payment while extending how long you pay interest. Compare total payments and remaining loan balances over the period you realistically expect to keep the home or the mortgage.
If you plan to move in 18 months, a 24-month simple break-even period raises a useful question: will other benefits justify the cost? If you plan to stay longer, still compare the new balance, rate structure, and closing costs.
Check mortgage-insurance removal before replacing the loan
If lowering the payment is your main goal, ask your current servicer whether mortgage insurance can be removed while you keep the existing mortgage. Fannie Mae's September 16, 2026 lender letter permits servicers to proactively contact borrowers who may be eligible for termination based on current property value. It does not make removal automatic or change the underlying eligibility rules.
Eligibility can depend on the loan owner, loan age, equity, property type, payment history, and a servicer-approved valuation. An online home-value estimate is not the required review. Ask the servicer for its written process, valuation cost, and the effective date of any payment change, then compare that keep-the-loan option with the refinance proposal.
Treat cash out as a separate decision
Cash-out refinancing increases the funds you borrow against your home. A home-equity loan or line of credit has its own payment structure and costs. Compare the amount of cash received, combined housing payment, repayment period, and what happens if a variable payment rises.
Ask for side-by-side written scenarios using the same date and assumptions. The calculator on this site uses your inputs; it does not provide a live lender offer.
A few common questions
Ask how the costs are covered and compare the interest rate, lender credits, and loan balance. The structure matters more than the label.
No. It is a simple example. Term changes, financed costs, balance differences, taxes, and how long you keep the loan can change the full comparison.
Not before checking the existing loan. Ask your servicer whether the mortgage insurance can be removed and what valuation or fee is required. Then compare that option with the refinance costs, rate, term, payment, and future balance.
YOUR NEXT DECISION
Turn this answer into a plan.
Will a refinance support my plan?
Compare upfront costs, remaining balances and your expected holding period. A smaller payment may come from a longer term, so review the full cost.
Read the original sources
Program rules and lender requirements can change. Confirm current terms before acting.