Your mortgage doesn’t have to stay the same for the life of your loan. Refinancing replaces your current mortgage with a new one, which can help you lower your payment, pay off your home sooner, or switch to a loan that fits your life better. At Fiesta Home Loans, we compare refinance options across our network of about 25 lenders to help homeowners across Colorado, from Grand Junction to Denver, find the right fit.
What Is a Rate and Term Refinance?
A rate and term refinance replaces your existing mortgage with a new loan for about the same amount, plus allowable closing costs. You aren’t taking cash out. You’re changing the terms of your loan.
Homeowners typically refinance to:
- Lower their monthly payment with a lower interest rate
- Shorten their loan term, such as moving from a 30-year to a 15-year loan to pay it off faster
- Switch loan types, like moving from an adjustable rate to a fixed rate
- Remove mortgage insurance by moving from an FHA loan to a conventional loan once they have enough equity
Will Refinancing Save You Money?
It depends. Refinancing comes with closing costs, so it’s important to look at the full picture. We’ll help you compare:
- Your new rate compared with your current rate
- How much time is left on your current loan
- The total closing costs
- How long it will take for your monthly savings to cover those costs, often called the break-even point
If you plan to stay in your home well past the break-even point, a refinance may be worth it. If you might move soon, it may not be. We’ll run the numbers with you so you can decide with confidence.
Timing Your Refinance
Mortgage rates change daily, so timing matters. Once you decide to move forward, we’ll talk through whether to lock your rate right away or wait, based on where the market seems to be heading.
Should You Consider Cash-Out or a HELOC Instead?
A rate and term refinance is about changing your loan, not accessing your equity. If your goal is to get cash from your home, one of these may be a better fit:
- Cash-out refinance: Replaces your mortgage with a larger loan and gives you the difference in cash.
- HELOC: Keeps your current mortgage in place and adds a flexible line of credit.
Is Refinancing Right for You?
A rate and term refinance is often a good fit if you:
- Want a lower rate or monthly payment
- Want to pay off your home faster
- Want to switch from an adjustable rate to a fixed rate
- Can qualify for a new mortgage under current guidelines
It’s usually not the right choice if your main goal is to access your home’s equity.
Why Work with a Mortgage Broker
A bank can only offer its own refinance rates and terms. As a broker, we can compare refinance options across multiple lenders to find the one that best fits your goals, and we’ll tell you honestly if refinancing doesn’t make sense right now. Our team is based in Grand Junction and helps homeowners across Colorado. We’re Latino-owned and bilingual. Hablamos Español.
FAQs
The break-even point is how long it takes for your monthly savings to cover the closing costs of your refinance. If you plan to stay in your home well past that point, a refinance may be worth it.
No. A rate and term refinance replaces your mortgage with a new loan for about the same amount, plus allowable closing costs. If you want cash from your home, a cash-out refinance or a HELOC may be a better fit.
It can. Some homeowners refinance from an FHA loan to a conventional loan once they have enough equity, which can remove mortgage insurance.
It depends on the market. Mortgage rates change daily, so once you decide to move forward, we’ll talk through whether to lock your rate right away or wait.
Yes. A refinance is a new mortgage, so you’ll need to qualify under current guidelines. We’ll review your situation and help you understand where you stand.
See If Refinancing Makes Sense for You
A quick review can tell you whether now is a good time to refinance. Check your refinance options by applying online or scheduling a free consultation with our team.
Equal Housing Opportunity. Fiesta Home Loans, Company NMLS #2548599. Alfredo Acevedo, NMLS #772305. Licensed in Colorado, Florida, Idaho, and Texas. This page is general information, not a commitment to lend. Refinancing may not lower your payment after closing costs are included. No rate, fee, or approval timeline on this page is a quote.
