Loan Program
Refinance Because the Math Works, Not Because Someone Called You.
Refinancing is only worth doing when the math says so. I will show you the break-even, the total interest cost, and what happens if you stay five years versus thirty — then tell you honestly whether to move.
Refinance: What You Need to Know
Half the refinance calls homeowners get are from people paid to originate a loan, not to advise. My standard is simple: if the break-even is longer than you plan to stay in the house, I will tell you not to do it. When it does make sense — dropping mortgage insurance, consolidating high-interest debt, pulling equity for a renovation, or shortening your term — it can be one of the highest-return financial moves available to you.
Who This Is For
- Homeowners with rates meaningfully above current market pricing
- FHA borrowers with 20% equity who want to eliminate mortgage insurance permanently
- Anyone carrying high-interest credit card or personal loan debt against significant home equity
- Homeowners funding a renovation, tuition, or business capital need through a cash-out refinance
- Borrowers who want to shorten a 30-year term to 15 or 20 years and cut total interest
How It Works
Your Refinance Roadmap
No mystery steps, no waiting a week to hear back. Here is exactly how the process runs from first call to closing table.
- 1
Define the goal first
Lower payment, shorter term, cash out, or drop mortgage insurance — these lead to different loans. We start with what you actually want to accomplish.
- 2
Run the real numbers
I model your current loan against the proposed one: payment, break-even, total interest, and where you stand in five and ten years. You see the comparison, not just a rate.
- 3
Application and appraisal
Documentation is lighter than a purchase since there is no contract or closing timeline pressure. Some refinances qualify for an appraisal waiver, which saves both time and money.
- 4
Close on your schedule
Refinances typically close in 21 to 30 days. Texas primary residences carry a three-day right of rescission after closing before funds disburse.
Key Benefits
Why Borrowers Choose This Program
Transparent break-even analysis
Total closing costs divided by monthly savings gives you the month you break even. If that is 32 months and you are moving in two years, the refinance loses money — and I will say so.
Cash-out for debt consolidation
Texas allows cash-out refinancing up to 80% of the home’s value under Section 50(a)(6) rules. Rolling 22% credit card debt into a mortgage rate often changes a household budget immediately.
Eliminate FHA mortgage insurance
FHA mortgage insurance generally lasts the life of the loan. Refinancing to conventional at 20% equity removes it, which for many homeowners saves more than the rate change itself.
No-lender-fee options
On qualifying refinances I can structure the loan with no lender fees, funded through pricing. It changes the break-even math substantially and is worth modeling both ways.
Rate-and-Term vs. Cash-Out
Two Refinances That Do Very Different Jobs
| Factor | Rate-and-Term | Cash-Out |
|---|---|---|
| Purpose | Lower the rate, change the term, or drop mortgage insurance | Convert equity into cash for debt, renovation, or investment |
| Cash to you at closing | None beyond minor adjustments | The equity you withdraw, less costs |
| Texas maximum loan-to-value | Up to 97% conventional | 80% on a primary residence |
| Typical pricing | Best available refinance pricing | Slightly higher than rate-and-term |
| Texas-specific rules | Standard | Section 50(a)(6) rules, including timing and fee limits |
| Common use case | Rate dropped, or removing FHA mortgage insurance | Consolidating high-interest debt or funding a renovation |
The Only Math That Matters
How to Calculate Your Break-Even
Take your total closing costs and divide them by your monthly savings. The result is the number of months until the refinance has paid for itself. Everything before that month costs you money; everything after is profit.
If your break-even is 28 months and you plan to be in the home for ten more years, refinancing is an easy yes. If you are listing the house next spring, it is an easy no — and I will tell you so rather than let you pay closing costs you will never recover.
A no-lender-fee structure changes this equation significantly, because a smaller cost figure shortens the break-even even if the rate is a fraction higher. I model both versions for every client.
Worked example
- Current payment (P&I)
- $2,410
- New payment (P&I)
- $2,155
- Monthly savings
- $255
- Total closing costs
- $5,900
Illustrative figures only. Your break-even depends on your loan amount, rate, and actual closing costs.
At a Glance
The Numbers, Plainly
Guidelines shown are general and current as of publication. Program availability varies by state, property, and borrower eligibility, and all loans are subject to full underwriting approval.
- Rate-and-term max LTV
- Up to 97% conventional, higher with FHA and VA streamlines
- Texas cash-out max LTV
- 80% of appraised value on a primary residence
- Typical credit score
- 620 minimum; 740+ for best pricing
- Typical closing timeline
- 21–30 days
- Right of rescission
- 3 business days on primary residences
- Lender fees
- No-lender-fee structures available on qualifying loans
Myths & Misconceptions
Things People Believe That Cost Them Money
You should refinance any time rates drop half a point.
The half-point rule ignores your loan size and closing costs. On a small balance, half a point may never break even. On a large one, a quarter point can pay for itself in under two years. Run the actual math.
Refinancing restarts your 30-year clock, so it is always bad.
It resets amortization, which is why I show total interest cost rather than just the monthly payment. You can also refinance into a shorter term or keep making your old payment amount on the new loan to stay on your original payoff schedule.
Cash-out refinancing is risky.
Converting unsecured debt to secured debt is a real tradeoff and deserves a serious conversation. But at reasonable loan-to-value with a stable payment and a plan not to run the cards back up, it is a legitimate financial tool.
Client Experience
“The best mortgage experience we have ever had.”
Refinance Client
Cedar Park, TX
Testimonials reflect individual experiences. Results vary and are not a guarantee of future outcomes.
Not sure this is your program?
That is what the free strategy call is for. Twenty minutes, no obligation, and you leave knowing which financing path actually fits your situation.
Book a Free Strategy CallQuestions
Refinance FAQs
Divide your total closing costs by your monthly savings. That is your break-even in months. If you plan to keep the home well past that point, the refinance makes sense. I run this for anyone who asks, with no obligation.
Texas limits cash-out refinances on a primary residence to 80% of the appraised value, so you need to retain at least 20% equity after the new loan. Texas also has specific 50(a)(6) rules and timing requirements that I walk clients through.
Yes, and for FHA borrowers this is often the single biggest reason to refinance. Once you hold 20% equity, moving to conventional financing removes the mortgage insurance permanently, even if your interest rate stays roughly the same.
The lender fees are covered through the pricing of the loan rather than charged at closing. Your rate may be marginally higher, but your out-of-pocket cost drops sharply, which shortens the break-even. I model it both ways so you can choose.
There is a small, temporary dip from the credit inquiry and the new account. Multiple mortgage inquiries within a 45-day window count as one. Most borrowers see scores recover within a few months of on-time payments.
Let’s Solve Your Mortgage Situation.
Apply online in about 12 minutes, or grab a free 20-minute strategy call. Either way, you’ll leave knowing more than you do right now.