Refinancing replaces your current mortgage with a new one and may help lower your interest rate, reduce monthly payments, change loan terms, or move from an adjustable rate to a fixed rate. It can also be a smart way to access home equity. Explore your options with clear guidance and competitive rates.
Refinancing replaces your current mortgage with a new loan that offers better terms, lower interest rates, or access to home equity. Homeowners refinance to reduce payments, switch loan types, or pay off their mortgage faster.
Homeowners looking to lower their interest rate, reduce monthly payments, shorten their loan term, consolidate debt, or access cash for home improvements can benefit from refinancing. If your home has increased in value, refinancing can also help you eliminate private mortgage insurance (PMI) or secure better loan terms.
Refinancing involves replacing your current mortgage with a new one. Lenders evaluate your credit score, home equity, loan-to-value ratio (LTV), and debt-to-income ratio (DTI) to determine eligibility. The process is similar to applying for a new mortgage and typically includes an appraisal and underwriting.
Refinancing options include rate-and-term refinance, cash-out refinance, cash-in refinance, streamline refinance (FHA, VA, USDA), and debt consolidation loans. Homeowners can switch from adjustable-rate to fixed-rate mortgages or vice versa, depending on financial goals.
Refinancing can help homeowners save money by securing lower interest rates, reducing monthly payments, and shortening loan terms. A cash-out refinance allows homeowners to tap into home equity for renovations, debt consolidation, or major expenses.
If you have built equity in your home, improved your credit score, or want better loan terms, refinancing may be the right choice. A mortgage specialist can help you determine the best refinancing option based on your financial goals.
Jon Shrum, President of KMC Financial and Team Shrum, helps homeowners refinance with clarity and confidence. He compares options across multiple lenders to find competitive rates and terms, explains the true savings, and makes sure the numbers align with your goals. With honest guidance and a smooth process, Jon helps you get more from your mortgage.
Make the goal, cost and repayment path clear before replacing a mortgage. These questions help organize a useful comparison with Team Shrum.
Agree whether the priority is reducing interest, changing the required payment, shortening the term or another specific outcome. A single quote may not serve all goals equally. Ask for a comparison that measures the result you want against keeping the current loan.
Two loans can have similar payments but repay principal at different speeds. A new long term can lower the payment while leaving debt outstanding longer. Compare the balance and costs at the same future date so the tradeoff is visible.
Bring current mortgage and other lien statements, the remaining term, estimated property value and current income information. Disclose changes since the original loan. The replacement lender must apply its requirements to today’s circumstances rather than relying on the previous approval.
Charges may be financed into the loan or offset by a lender credit associated with the rate. Ask where each charge appears and compare a cash-paid alternative. Costs moved into the balance or pricing still affect the overall value of the refinance.
Yes. Other liens may need payoff or subordination under their agreements. Assistance can have repayment triggers. Identify them early so the team can check the requirements and timing before you rely on a particular refinance structure.
Review the cash required, fees, payment, new balance and payoff date together. Consider the expected time in the home and how savings change if you move sooner. Streamlined government programs still have conditions and costs; a simpler application is not proof of a financial benefit.
Information checked September 6, 2026. Sources: CFPB: Refinance decision guide · CFPB: No-closing-cost refinancing · CFPB: PMI cancellation · VA: Streamline refinance requirements · CFPB: Mortgage assistance.
Applicant should not assume that any debt will be eliminated by refinancing or paying on balances since the debts are consolidated into a new loan. Reduction in payments may reflect longer loan terms and your total finance charges may be higher over the life of the loan. The actual amount of savings may vary.
