Rate-and-term refinance
Lower your rate, shorten your term or drop mortgage insurance
Replace your current mortgage with one that fits where you are now, with a break-even analysis before you commit.
Rate-and-term refinance: how it works
A rate-and-term refinance replaces your existing mortgage without taking cash out. People refinance to lower their interest rate, move from an adjustable to a fixed rate, shorten a 30-year loan to 15 years, or remove FHA mortgage insurance by moving to a conventional loan.
Refinancing has costs, typically 2% to 3% of the loan amount, so the question is always how long it takes to earn those costs back. Before you apply we send a written break-even analysis comparing your current loan to the proposed one month by month.
If rates are not low enough yet, we will tell you, set a rate alert at your target and call you when the numbers make sense.
What's included with Harborview
- Written break-even analysis before you apply
- Conventional, FHA streamline and VA IRRRL options
- No-cost refinance option with a slightly higher rate
- Appraisal waivers when eligible
- Free rate alerts at your target rate
- Remote or in-office closing
The process, step by step
Your loan officer stays with you the whole way, and you get status updates by text at every milestone.
Savings review
Share your current statement and we compare the numbers honestly.
Apply and lock
Lock your rate once the break-even point makes sense for you.
Appraisal or waiver
Many borrowers qualify for an appraisal waiver.
Close
A three-day rescission period applies, then your new loan funds.
Benefits worth knowing
Lower monthly payment
Even a half-point drop can save hundreds a month on a Boston-sized balance.
Pay off sooner
Move to a 15 or 20-year term and cut total interest dramatically.
Remove mortgage insurance
Refinance from FHA to conventional once you reach 20% equity.
Qualifying guidelines
General guidelines only. Exceptions and overlays apply, and your loan officer will review your situation.
| Factor | Guideline |
|---|---|
| Rate difference | Usually worthwhile at 0.5% to 0.75% lower, depending on balance |
| Time in home | Plan to stay past your break-even month |
| Equity | 20% equity avoids PMI on a conventional refinance |
| Credit score | 620 minimum; pricing improves at 740+ |
| Debt-to-income | Up to 45% conventional; streamlines may not require income |
Related programs
Use your equityCash-out refinance
Refinance for more than you owe and take the difference for renovations, tuition or paying off high-interest debt.
Learn more
Use your equityHome equity line of credit
A revolving line of credit secured by your home, ideal for phased renovations and tuition paid over time.
Learn more
Buy a homeVA loan
Guaranteed by the Department of Veterans Affairs for eligible veterans, service members and surviving spouses.
Learn more
Refinance questions
More answers in our full FAQ.
Most conventional loans require six months of payments. FHA streamline and VA IRRRL loans have their own seasoning rules, generally around 210 days.
Only if you choose that. You can pick a term that matches the years left on your current loan, or shorter.
We cover your closing costs in exchange for a slightly higher rate. It shortens break-even to zero, which suits people who may move in a few years.
Ready to see your Refinance numbers?
A pre-approval takes about 10 minutes online and does not affect your credit score. A local loan officer follows up the same day.
- Soft credit check
- 24-day average close
- 4.9 from 1,284 reviews
