Payment savings are not the whole decision
Restarting with a longer term may reduce the payment while increasing the time spent in debt. Compare closing costs, total interest and how long you expect to keep the loan.
Before refinancing
- Compare Loan Estimates from multiple lenders
- Confirm whether costs are paid upfront or added to the balance
- Consider the break-even period and expected time in the home
- Review cash-out, mortgage-insurance and tax consequences separately
Educational estimate only; not a refinance recommendation or lender quote.