A refinance should have a clear purpose.
Compare refinance goals, costs, loan terms and break-even timing before replacing your existing mortgage.
Talk through your optionsDefine what you want to change
Refinancing replaces an existing mortgage with a new one. The goal might be a different rate, a shorter or longer term, a change in rate structure, or access to available equity through a cash-out refinance when eligible.
Start with the problem you want to solve. A lower monthly payment can be useful, but extending the repayment period may increase total interest even when the payment falls.
Compare before and after
| Current loan | Proposed loan |
|---|---|
| Balance and remaining term | New balance and new repayment term |
| Interest rate and monthly principal and interest | New interest rate, APR and principal and interest |
| Current mortgage insurance | New mortgage insurance, if any |
| Existing equity and cash needs | Closing costs, cash received or cash required |
Understand the cost of changing loans
Review closing costs and determine whether you will pay them upfront, finance them or accept different pricing in exchange for a lender credit. “No closing cost” does not mean the transaction has no economic cost.
The simple payment-savings break-even calculation divides upfront costs by monthly savings. It is only one lens: loan term, remaining balance, tax considerations and the time you expect to keep the loan also matter.
Put your goal on paper
Bring your current mortgage statement and your reason for refinancing. Ask Harman for a comparison that explains both the near-term payment and the longer-term consequences.
Explore the break-even calculatorFURTHER READING
Fannie Mae: Mortgage refinancing CFPB: No closing cost loans and refinancingGeneral educational information. Your loan’s requirements and terms must be confirmed for your application. Content reviewed November 4, 2026.