Refinancing in Austin

Refinance the loan, not the regret.

A lower rate isn't always a better loan. We run the real break-even, the real lifetime cost, and the tax impact before recommending anything. If the numbers don't make sense, we'll tell you to stay put.

5–7 yr
Typical Break-Even Target
No
"Free" Refinance Tricks
Yes
Total Lifetime Cost Math

Refinance Strategies

Four refis. Four reasons. Pick yours.

Most homeowners think refinancing means "lower rate." It can also mean shorter term, cash for renovations, or wiping out high-interest debt. We help you pick the right one.

Most Common

Rate-and-Term Refinance

Replace your current loan with a new one at a lower rate, different term, or both. The classic move when rates drop or your credit has improved.

  • Lower monthly payment
  • Shorten 30-year to 20 or 15 to slash lifetime interest
  • Drop FHA mortgage insurance once you hit 20% equity
  • Switch from ARM to fixed (or vice versa) on a strategy call

When it makes sense: You can recover the closing costs within ~5 years of payment savings and you plan to stay 5+ years.

Renovations · Debt Payoff · Investments

Cash-Out Refinance

Pull tax-free cash from your equity in a single transaction. The lever for renovations, paying off high-interest debt, or funding a downpayment on another property.

  • Up to 80% LTV on most owner-occupied homes
  • Often a better path than a HELOC for large lump sums
  • Consolidate credit cards / personal loans into one fixed rate
  • Renovations roll into the mortgage (and add resale value)

When it makes sense: The blended new rate is lower than your weighted average of current debts, and you have a clear plan for the cash.

VA · FHA · USDA

Streamline Refinance (IRRRL)

VA, FHA, and USDA each have a streamlined refinance: minimal docs, often no appraisal, faster close. Built for borrowers already in a government loan.

  • VA IRRRL: no income docs, often no appraisal
  • FHA Streamline: no DTI verification on net tangible benefit
  • Lower fees and faster close than a traditional refi
  • Can roll closing costs into the loan

When it makes sense: You're already in a VA or FHA loan and rates dropped enough that the math works after the new VA funding fee or FHA UFMIP.

Investors · Rentals

DSCR / Investment Refinance

Refinance a rental or short-term-rental property based on its cash flow, not your personal DTI. Pull equity to fund the next acquisition.

  • No tax returns, no W-2s, no personal DTI
  • Close in your LLC
  • STR income counts (Form 1007 / 1025)
  • Often paired with portfolio strategy for 4+ door investors

When it makes sense: You're scaling a portfolio and your personal DTI is the bottleneck, let the property qualify itself.

The break-even math nobody runs.

Most lenders quote rate. We quote lifetime cost. Here's the actual calculation we'll do on your call, same way we'd run it for our own loan.

Run my real number →
Total closing costs$6,400
Monthly payment savings−$280 / mo
÷ Months to recover costs22.9 mo
Years you plan to stay7+ yrs
Net lifetime savings+$17,120

Signals to Watch

Six signs it may be time.

If any two of these apply, it's worth a no-cost conversation. We'll tell you straight whether the math actually works.

01

Rates dropped 0.75%+

The old "1% rule" is dated. With today's loan sizes, even 0.5–0.75% can be a meaningful win, if break-even is right.

02

Your credit jumped 50+ points

If you bought with a 660 and you're now sitting at 740+, you're paying more in rate than you should.

03

You're paying FHA MI

Once you cross 20% equity, refinancing to conventional kills the monthly mortgage insurance permanently.

04

You have an ARM resetting

Fixed-rate refinances make sense before the reset hits, especially if your timeline got longer than originally planned.

05

High-interest debt is piling up

Cash-out at 6.5% can wipe out 22% credit card balances. The math gets aggressive fast.

06

You're funding the next deal

Pulling equity from a primary or rental to fund a new acquisition is one of the most common moves we run for investors.

Refi FAQ

The honest questions about refinancing.

How much does it cost to refinance?

Typically 2–3% of the loan amount, with appraisal, title, lender, and recording fees. Some lenders advertise a "no-cost refi", that means the fees are baked into a higher rate. We'll show you both versions side-by-side so you can pick.

Is a no-closing-cost refinance a good deal?

Sometimes, usually when you don't plan to stay in the loan long. The lender credits closing costs in exchange for a slightly higher rate (often 0.25–0.5%). If you'll be out of the loan in 3–4 years, this can win. Past that, the rate-paid version usually beats it.

Will my taxes and insurance escrow transfer?

No, your old escrow refunds within ~30 days after closing, and your new lender sets up a new one. Plan to fund 2–3 months of taxes and insurance at closing, then get the old escrow check back shortly after.

Does refinancing restart my mortgage?

It can, but it doesn't have to. If you're 7 years into a 30, we can refinance into a new 23-year or 20-year term to keep your payoff date roughly the same. Most lenders won't even offer this unless you ask.

How long does a refinance take?

Typical: 25–35 days. Streamlines (VA IRRRL, FHA Streamline) can close in 14–21. Cash-outs and DSCR refis take longer because of appraisal and seasoning requirements.

Run the real number first.

10-minute application, no credit pull, no pressure. We'll calculate your actual break-even and tell you straight whether refinancing is worth it.

Get My Refi Quote →

Austen Smith · NMLS #265697 · Barton Creek Lending Group NMLS #264320 · Equal Housing Lender