Refinance with clarity, not pressure.
Whether you're chasing a lower rate or pulling equity out of your Texas home, here's how to know if a refinance actually makes sense, and what your new payment could look like.
Rate & Term Refinance
Replace your existing mortgage with a new one that has a better interest rate, a different term length, or both. You don't take any cash out, the goal is purely to improve your loan.
- Lower your monthly payment when rates drop below where you locked.
- Shorten your term from 30 to 20 or 15 years to pay off faster and save on interest.
- Drop mortgage insurance (PMI/MIP) once you have enough equity, common when refinancing out of an FHA loan.
- Switch loan types from an ARM to a fixed-rate loan for stable payments.
Cash-Out Refinance
Replace your existing mortgage with a larger loan and take the difference in cash at closing. Use the proceeds for home renovations, debt consolidation, investments, or major life expenses.
- Tap your home equity at mortgage rates, typically far lower than credit cards or personal loans.
- Consolidate high-interest debt into one predictable monthly payment.
- Fund renovations that increase your home's value.
- Interest may be tax-deductible when proceeds are used to buy, build, or substantially improve the home (consult your CPA).
The quick comparison
| Rate & Term | Cash-Out | |
|---|---|---|
| Primary goal | Lower rate or change loan term | Pull cash from home equity |
| Cash at closing | None (you may roll in closing costs) | Yes up to 80% LTV in Texas |
| Typical rate | Lowest available | Slightly higher than Rate & Term |
| Max LTV (Texas primary) | Up to 97% (program dependent) | 80% (Texas constitutional cap) |
| Closing costs | Standard refi costs | Capped at 2% of loan amount (TX) |
| Best for | Lowering payment, dropping PMI | Renovations, debt payoff, large expenses |
Run the numbers in seconds.
Enter your current loan, the new rate you're being quoted, and (optional) how much cash you want to take out. We'll show your new payment, monthly savings, and break-even point.
Estimates are for planning only and exclude taxes, insurance, HOA, and PMI. For an actual quote, request a custom loan estimate.
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