Refinance & home equity.

A rate-and-term refinance replaces your current mortgage with a new one to change the interest rate, the term, or the loan type (adjustable to fixed, FHA to conventional). A cash-out refinance replaces the loan with a larger one and hands you the difference for a renovation, an investment, or to consolidate debt. A home equity line of credit (HELOC) leaves your first mortgage alone and adds a revolving line you draw from as needed.

Homeowners whose situation has changed since they bought — better credit, more equity, different plans for the home — and owners who want to fund a project or consolidate higher-cost debt with their equity.

Current mortgage statements; income and employment documentation; a credit history that meets the program's standards; and an appraisal or valuation of the home. For a cash-out refinance or HELOC, enough equity to stay within the program's loan-to-value limits after the new loan.

A refinance has costs, and whether it pays off depends on how long you'll keep the home and the loan. We run the break-even math and tell you plainly if it doesn't work — a HELOC or simply staying put is sometimes the right answer.