Refinance
Lower the rate or shorten the term
A rate and term refinance changes what your mortgage costs without changing what you owe. Here is the arithmetic that tells you whether it is worth doing.
Three reasons members refinance
All three keep your loan balance roughly where it is. If you want cash out of the house, that is a different product.
A lower rate
The classic case. Drop a $340,000 balance from 7.25% to 6.375% and the payment falls about $205 a month, every month, for as long as you hold the loan.
A shorter term
Moving from 30 years to 15 raises the payment but collapses the interest. On $340,000 the lifetime difference is roughly $144,000.
Out of an adjustable rate
If your ARM is approaching its first adjustment, a fixed refinance ends the uncertainty. This is the one refinance worth doing even without a big rate drop.
Break-even, worked all the way through
A refinance costs money to do. Break-even is the month at which the savings have paid that cost back. Below is a real example, not a range.
Divide $4,590 in costs by $255 saved each month and you get 18 months. Stay in the house past month 18 and the refinance made money. Sell in month 12 and it cost you roughly $1,530. That single division is the whole decision, and no lender should need a meeting to show it to you.
Rates current as of July 2026 and subject to change. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.
Where the math turns against you
Two honest cautions we would rather you hear from us than discover in year three.
Resetting the clock
Refinancing 28 remaining years back into a fresh 30 lowers the payment partly by stretching it. If you keep the new loan to term you may pay more interest overall despite the lower rate. Ask for a 25-year or 20-year term instead; we write both.
Rolling costs into the balance
A no-cost refinance is not free; the $4,590 either goes onto your balance or into your rate. That is fine if you plan to move soon, and expensive if you do not. We will quote it both ways so you can see the difference.
What a refinance takes
Typically 25 to 30 days, and less paperwork than your original purchase.
Get a written break-even
Send us your current rate, balance, and years remaining. We return the table above filled in with your numbers, at no cost and with no application.
Apply and lock
Income documents, a mortgage statement, and a homeowners insurance declaration page. Lock your rate the day your application is complete.
Appraisal and closing
Many refinances qualify for an appraisal waiver, which saves both $650 and two weeks. Federal law then gives you three business days to rescind after signing.
Common questions
How much of a rate drop makes refinancing worthwhile?
The old rule of one full percentage point is a shortcut, not an answer. What matters is your break-even month against how long you will stay. On a large balance, even 0.5% can break even inside two years.
Can I refinance and skip a payment?
It feels that way, but no. The interest you would have paid that month is collected in the payoff at closing. Treat any lender that sells a skipped payment as a benefit with some suspicion.
Will refinancing hurt my credit score?
A hard inquiry and a new account typically cost a handful of points for a few months. Mortgage inquiries within a 45-day window count as one, so shopping several lenders does not compound the effect.
Do I need a new appraisal?
Often not. If your loan-to-value is comfortable and the property is a standard single-family home, an automated valuation frequently satisfies the requirement. We tell you within a few days of application.
Can I refinance if my current mortgage is not with Summit?
Yes, and most of our refinances are exactly that. You do need to become a member, which takes a $5 deposit into a share account.
What is the difference between this and a cash-out refinance?
A rate and term refinance keeps your balance essentially unchanged and simply reprices it. A cash-out refinance increases the balance and hands you the difference, which carries a slightly higher rate.
Ask us for the break-even first
We will run your numbers and tell you plainly if the answer is no. That happens often enough that we mean it.