Francisco Williams, CCIM
Glossary

Refinance

Refinance

Replacing your existing mortgage with a new one — to lower the rate, change the term, pull out equity, or drop mortgage insurance.

Three main refi types: Rate/term (lower rate, keep or change term), Cash-out (borrow against accumulated equity), and Streamline (simplified refi on existing FHA or VA loans).

Break-even math: (total closing costs) / (monthly payment reduction) = months to recoup. Under 24 months = no-brainer in most cases. 24–48 months = depends on how long you'll keep the loan. Over 48 months = rarely worth it.

California cash-out refi is capped at 80% LTV on most programs. Investment-property cash-out typically caps at 75%. Seasoning requirements (how long you must own before refinancing) vary by program.

Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.

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