Refinancing your mortgage means replacing your current home loan with a new one, usually to lower your interest rate, reduce your monthly payment, shorten your term, or tap into your home’s equity. At MVP Funding, refinancing is what we do best. We specialize in helping homeowners restructure their mortgages to save money and put more cash back in their pockets, and we guide you through every step with expert knowledge and personalized service.
There’s no one-size-fits-all refinance. The right option depends on your goals, your current loan, and how long you plan to stay in your home.
For veterans, active-duty service members, and eligible spouses, there are two main paths: the VA IRRRL (Streamline) and the VA Cash-Out Refinance, often with reduced paperwork.
Replace your current mortgage with a larger loan and take the difference in cash. Convert the equity you've built into funds for home improvements, debt consolidation, tuition, or other major goals.
Each refinance type solves a different problem. This comparison can help you see which one aligns with your situation before you talk with our team.
| Refinance Type | Best For | Changes Balance? | Provides Cash? | Key Benefit |
|---|---|---|---|---|
| Rate-and-Term | Lowering your rate or payment | No | No | Reduced rate or adjusted term |
| Cash-Out | Accessing home equity | Yes (increases) | Yes | Convert equity into usable cash |
| VA IRRRL (Streamline) | Existing VA loan holders | No | No | Lower rate, minimal paperwork |
| VA Cash-Out | Veterans accessing equity | Yes (increases) | Yes | Tap equity or refinance into a VA loan |
Life changes, and so do the reasons your original loan made sense. Maybe rates have shifted since you first bought, maybe your monthly payment feels tighter than it used to, or maybe you’ve built up equity you’d like to put to work. Whatever’s changed, refinancing is a chance to reset the terms of your mortgage in your favor.
Refinancing comes with upfront closing costs, so the key question is how long it takes for your monthly savings to outweigh those costs. That moment is your break-even point.
For example, if refinancing costs $6,000 and lowers your payment by $250 a month, you’d divide $6,000 by $250 for a break-even point of 24 months. If you plan to stay in your home well beyond that point, refinancing can lead to meaningful long-term savings. Our team can help you run these numbers for your specific situation.
The formula above is simple. The inputs are the hard part — your closing costs depend on your loan amount, your county, your lender credits, and what your current loan still charges you to leave it. Give us those details and we’ll tell you where your break-even actually lands.
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Refinancing is math before it is anything else. What does the new loan cost you, and how many months of savings does it take to pay that back? If the answer is longer than you plan to stay, we will say so.
Ready to see what you could save? Fill out our short form application and one of our mortgage professionals will reach out to walk you through your options.
DISCLAIMER:
This is not a commitment to lend or extend credit. All loans are subject to credit approval. Information is subject to change without notice. Other restrictions may apply. VA loan benefits are subject to eligibility requirements determined by the U.S. Department of Veterans Affairs.
Get answers to the most common questions regarding Refinancing.
Refinance closing costs typically run about 2% to 5% of your loan amount, covering things like appraisal, origination, and title fees. The exact figure depends on your loan and lender, which is why calculating your break-even point matters.
Timelines vary based on the type of refinance and your documentation. Streamlined programs with reduced paperwork can move faster, while a standard rate-and-term or cash-out refinance involves a more complete review. Our team works to keep the process as smooth and efficient as possible.
Requirements vary by program. A rate-and-term refinance generally has more flexible equity requirements, while a cash-out refinance typically requires you to keep a portion of your equity in the home after closing. We can review your specifics and let you know where you stand.
It can, depending on your new rate and term. Lowering your interest rate or extending your term can reduce your monthly payment, though extending the term may increase the total interest you pay over the life of the loan. We’ll help you weigh the trade-offs.
Yes. Government-backed loans often have their own streamlined refinance programs designed to make lowering your rate simpler and faster. If you have a VA loan, ask us about the VA IRRRL and VA Cash-Out options.
