What is it? (plain English)
A refinance replaces your existing mortgage with a new one — usually to change your interest rate or your loan term — without taking significant cash out (that's a separate product; see Cash-Out Refinance).
Who is it for?
Homeowners who want to lower their rate, change their term, or move from one loan type to another.
When might it make sense?
When market rates or your situation have shifted enough that a new loan saves you money or better fits your goals — and you'll keep the home long enough to come out ahead.
Good to know
A refinance has closing costs, so the key question is your break-even point: how long it takes the monthly savings to outweigh those costs. Refinancing can also reset your loan's clock, which matters if you're well into your current term.
Potential advantages
May lower your rate or payment; can shorten your term; can move you out of a loan type that no longer fits.
Potential limitations
Closing costs that may outweigh the benefit if you sell or refinance again soon; resets amortization if you extend; qualifying is required again.
Documents you may need
Identification, income documents, recent mortgage statement, property details, insurance information.
Questions to ask before you choose
- What's my break-even point?
- How long will I stay in the home?
- Am I lowering the rate, the term, or both?
- Does it reset my clock in a way that costs me?
How Kyon helps
We help you run the break-even math honestly — including the case for not refinancing — and connect you with the right licensed channel if it makes sense.