Mortgage & Home · Glossary
Refinancing
Also called: Refi, Cash-out refinance
Replacing your current loan with a new one, usually to get a lower rate, change the term, drop mortgage insurance, or take cash out of your equity.
A rate-and-term refinance swaps your loan for one with a better rate or different length. A cash-out refinance borrows more than you owe and pays you the difference.
Refinancing isn't free — you pay closing costs again. It makes sense when you'll keep the new loan past the break-even point and the total interest over that time is lower, not just the monthly payment.
Calculators that use this
Refinance CalculatorCompare your current mortgage to a new rate and term.Auto Loan CalculatorCar payment with trade-in, sales tax, fees, and rebates.Mortgage Payoff CalculatorHow extra, lump-sum, or biweekly payments pay your mortgage off early.VA Loan CalculatorVA mortgage payment with the funding fee and no monthly mortgage insurance.
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Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.