When should you refinance your mortgage?

Refinancing generally makes sense when you can lower your interest rate by at least 0.5–1% and when you'll stay in the home long enough to recoup the closing costs. Calculate your break-even point before applying.

How much does it cost to refinance a mortgage?

Refinancing typically costs 2–6% of the loan amount in closing costs — usually $3,000–$8,000 on a $200,000 loan. Some lenders offer no-closing-cost refinances, but the costs are rolled into the rate or loan balance.

What credit score do you need to refinance?

Most conventional refinances require a 620+ credit score. For the best rates, aim for 740+. FHA streamline refinances can be done with lower scores if you already have an FHA loan.

How long does a mortgage refinance take?

The typical refinance takes 30–60 days from application to closing. Having your documents ready — pay stubs, tax returns, bank statements — can speed up the process.

What is a cash-out refinance?

A cash-out refinance replaces your current mortgage with a larger one, and you receive the difference in cash. It can be useful for home improvements or consolidating high-interest debt, but it resets your loan term and increases your balance.

How to Refinance a Mortgage in 2026: When It Makes Sense

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Not sure how much you need in your emergency fund? Use the emergency fund calculator to find your target number based on your actual monthly expenses.

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Nolan Briggs

Founder, Up From Zero HQ

Nolan Briggs spent years working a regular job while carrying more debt than he knew how to handle. No finance degree. No safety net. Just a lot of bad decisions and a determination to dig out of them the hard way. After paying off tens of thousands in debt and rebuilding his finances from scratch, he started Up From Zero to give other working people the plain-English money education he wished he had. Everything on this site is built for beginners — no jargon, no get-rich promises, and no shame. Just real systems that actually work for people working real jobs. Not a licensed financial advisor — everything here is plain-English education based on publicly available information, personal experience, and primary sources like the IRS, CFPB, and HUD.