5 signs it’s time to refinance your mortgage
- Lending since 1988
- Home refinance options for every situation
- People first, not just a transaction
- 100% commitment to closing on time
Your mortgage made sense then. Does it now?
Refinancing replaces your current loan with a new one. At Cornerstone, we don't push refinancing. A home refinance may not be right for everyone, and we’re here to help you explore your options.
Here are several signs you may benefit from a refinance:1
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Your interest rate is higher than today's rates
If rates have dropped since you closed on your home, you may be leaving money on the table every month. Even a modest reduction can add up to meaningful savings over the life of your loan. The key question: Will the savings outweigh the closing costs? Your loan officer can help you find out.
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Your monthly payment feels like a stretch
Life shifts. If your budget has tightened since you first bought your home, refinancing may lower your monthly payment and give you room to breathe. Many homeowners also revisit their broader financial picture during a refinance, including savings strategies, monthly cash flow, and banking relationships.
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You want to pay off your home sooner
If your income has grown and you’d like to build equity faster, shortening your loan term could save you a significant amount in interest over time. Sometimes without substantially increasing your monthly payment.
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You have equity you could put to work
Every payment you've made has been building something. A cash-out refinance lets you convert that equity into funds you can use for home improvements, tuition, big expenses, or higher-interest debt. Some homeowners use this opportunity to reinvest into their property through renovations, fund a major expense, or improve long-term financial flexibility.
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You're still paying for private mortgage insurance (PMI)
If you bought your home with less than 20% down, you may still be paying PMI. Once your loan balance falls below 80% of your home's value, refinancing could eliminate that cost and free up funds every month.
At Cornerstone, it starts with a conversation
Homeowners often come to us wondering if refinancing is worth the hassle. After a quick check-in with a loan officer, they may walk away with a lower monthly payment and thousands in projected long-term savings. Sometimes, it only takes one conversation to realize how much your mortgage could be doing for you.
Is refinancing right for you?
There’s an easy way to find out.
Refinancing FAQs
The most common reason is to get a lower interest rate, resulting in lower monthly payments and possibly a shorter loan term. Other reasons to refinance include switching loan types, eliminating private mortgage insurance (PMI), and cashing out home equity to cover big expenses or consolidate high-interest debts.
Determining whether to refinance your mortgage depends on your individual financial situation. It can make sense to refinance if mortgage rates are dropping below your current rate, your home has appreciated in value, or you have been making consistent, on-time payments on your original 30-year mortgage for less than 10 years.
In addition to an application fee, you will generally need to pay the same expenses that were incurred with your original mortgage.
Refinancing typically takes between two and four weeks. The length of time can depend on a number of factors like the appraisal and neighborhood comparables.
Yes, you have options to tap into your home equity. Your lender can help determine the right solution for you.
