Generally, you can do a traditional rate and term refinance as soon as you want. For existing U.S. Bank home mortgages that are refinanced and paid off within 120 days of the previous closing date, a fee of one point will be charged. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
Compare a variety of mortgage types by selecting one or more of the following.
Conventional fixed-rate loans
The term is the amount of time you have to pay back the loan.
The interest rate is the amount your lender charges you for using their money. It's shown as a percentage of your principal loan amount. ARM loan rates are based on an index and margin and may adjust as outlined in your agreement.
The annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased or decreased after the closing date for adjustable-rate mortgages (ARM) loans.
The monthly payment shown is made up of principal and interest. It does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included.
Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
The term is the amount of time you have to pay back the loan.
The monthly payment shown is made up of principal and interest. It does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included.
The interest rate is the amount your lender charges you for using their money. It's shown as a percentage of your principal loan amount. ARM loan rates are based on an index and margin and may adjust as outlined in your agreement.
The annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased or decreased after the closing date for adjustable-rate mortgages (ARM) loans.
Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
The term is the amount of time you have to pay back the loan.
The monthly payment shown is made up of principal and interest. It does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included.
The interest rate is the amount your lender charges you for using their money. It's shown as a percentage of your principal loan amount. ARM loan rates are based on an index and margin and may adjust as outlined in your agreement.
The annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased or decreased after the closing date for adjustable-rate mortgages (ARM) loans.
Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
The term is the amount of time you have to pay back the loan.
The monthly payment shown is made up of principal and interest. It does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included.
The interest rate is the amount your lender charges you for using their money. It's shown as a percentage of your principal loan amount. ARM loan rates are based on an index and margin and may adjust as outlined in your agreement.
The annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased or decreased after the closing date for adjustable-rate mortgages (ARM) loans.
Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
The term is the amount of time you have to pay back the loan.
The monthly payment shown is made up of principal and interest. It does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included.
The interest rate is the amount your lender charges you for using their money. It's shown as a percentage of your principal loan amount. ARM loan rates are based on an index and margin and may adjust as outlined in your agreement.
The annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased or decreased after the closing date for adjustable-rate mortgages (ARM) loans.
Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
The rates and monthly payments shown are based on a loan amount of $464,000 and at least 25% equity. Learn more about how these rates, APRs and monthly payments are calculated. Plus, see a conforming fixed-rate estimated monthly payment and APR example. Get more details.
What is a conventional fixed-rate refinance?
A conventional fixed-rate refinance has an interest rate that won’t change for the life of your home loan, making your monthly principal and interest payment predictable and consistent. Conventional refinance loans like this may also feature lower interest rates than jumbo refinance loans, FHA refinance loans or VA refinance loans. The length of the loan typically ranges from 10 to 30 years.
With a conventional fixed-rate refinance, you may be able to avoid private mortgage insurance (PMI) if you have 20% or more equity in your home or a down payment of 20% or more. PMI protects the lender against any loss if you fail to pay your mortgage. At least 5% equity (or down payment) is required for most conventional refinance loans, but less equity means you may be required to pay PMI.
You may qualify for a conventional fixed-rate refinance loan if you have good credit and a low debt-to-income ratio (the amount of recurring loan and credit card debt you have relative to your monthly income). You’ll also need to meet the established guidelines for income and other personal information.
One alternative to the fixed-rate refinance is the adjustable-rate mortgage (ARM) refinance loan, that features lower monthly principal and interest payments during the introductory fixed-rate period. If you plan on moving after a few years, an ARM may be a better option to take advantage of those lower monthly payments.
30-year fixed-rate mortgages
The 30-year fixed-rate refinance loan has long been popular because of its fixed interest rate and lower monthly payments. But, since the interest payments are spread out over 30 years, you’ll pay more interest over the life of the loan than you would on a shorter-term mortgage.
15- and 20-year fixed-rate mortgages
With a shorter loan term and lower interest rate, a 15-year fixed-rate refinance or 20-year fixed-rate refinance can help you pay off your home faster and build equity more quickly, although your monthly payments will be higher than with a 30-year loan.
Need help choosing the right refinance loan?
If you’re ready to refinance your mortgage but aren’t sure about your options, it may be time to find a mortgage loan officer. A mortgage loan officer can offer you guidance on choosing the right refinance loan for your specific needs.
Mortgage refinance calculator
See if refinancing is right for you and how much you could save with our mortgage refinance calculator.
Get answers to common questions.
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Disclosures
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