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Mortgage Refinance

Refinance when the math says so. Not before.

Every refinance recommendation from Northgate comes with a written break-even analysis. If it does not clear, we will tell you to wait, and call you when it does.

Check My Refinance OptionsRun the Numbers
Written break-even analysisCash-out to 80% LTVClose in 25 to 35 days

Four Reasons

Refinancing is not one product

People refinance for four different reasons, and each has a different test for whether it is worth doing.

Lower the rate

The classic case. The test is break-even: closing costs divided by monthly savings. Under 24 months is usually an easy yes; over 48 usually is not.

Shorten the term

Moving from 30 years to 15 or 20 raises the payment but can cut total interest by six figures. We show both the monthly and lifetime numbers.

Drop mortgage insurance

If your home appreciated past 20% equity, or you are stuck with lifetime FHA MIP, refinancing into conventional removes it. Sometimes that alone pays for the refi.

Take cash out

Renovation, debt consolidation, or a down payment on a rental. Generally available to 80% loan-to-value, and worth comparing against a second mortgage before you touch a good first-lien rate.

The Break-Even Test

The only number that decides it

Take everything the refinance costs you at closing. Divide by what it saves you every month. The answer is how many months you have to keep the loan before you come out ahead. If you are moving before then, the refinance loses you money no matter how good the rate looks.

It sounds obvious. It is also the calculation most lenders skip, because the honest answer is sometimes “not yet.”

Worked example

  • Current payment (P&I)$2,088
  • New payment at 5.75%$1,867
  • Monthly savings$221
  • Total closing costs$4,850
  • Break-even22 months

Staying five more years? Clear yes. Selling in eighteen months? Clear no. $350,000 balance, 30-year fixed, illustrative figures only.

Refinance FAQ

Refinancing, answered

How much lower does my rate need to be to refinance?
There is no universal threshold. What matters is the break-even point: total closing costs divided by monthly savings gives you the number of months you need to stay in the loan for it to pay off. If you plan to move or refinance again before that date, do not do it. We run this calculation before recommending anything.
What is the difference between rate-and-term and cash-out?
A rate-and-term refinance replaces your loan with a better rate or a different term and keeps the balance roughly the same. A cash-out refinance increases the balance and gives you the difference at closing. Cash-out carries slightly higher pricing and stricter loan-to-value limits, usually capped at 80%.
Can I refinance to remove mortgage insurance?
Often, yes. If your home has appreciated enough that you now have 20% equity, refinancing into a conventional loan drops PMI entirely. On FHA loans taken out after June 2013, mortgage insurance lasts the life of the loan, so refinancing into conventional is the only way off it.
Will refinancing restart my 30-year clock?
It does if you take another 30-year term, which is why we always price a shorter term alongside it. Moving from 23 years remaining into a fresh 30 can lower the payment while increasing total interest paid. Both numbers get shown to you.
How long does a refinance take?
Typically 25 to 35 days. There is no seller and no contract deadline, so refinances tend to move at the speed of the appraisal and your document turnaround.

Should you refinance right now?

Send us your current rate, balance, and how long you plan to stay. You get the break-even math back, even if the answer is to wait.

Run My NumbersTalk to Danielle