A mortgage refinance can potentially lower the monthly payment or shorten the loan term — but only if the rate, closing cost and term combination make sense for your household. Lenders price refinance quotes very differently, so comparing multiple written quotes side by side is the cleanest way to see the all-in cost of each option. Below is the homeowner checklist for what affects a refinance quote and the questions to ask each lender.
What you'll find on this page
- What affects a refinance quote
- Rate, term and closing cost — how each is priced
- Questions to ask each lender
- How to compare written refinance quotes side by side
- FAQ — costs and savings
What to know before you get quotes
What affects a refinance quote
A mortgage refinance quote reflects the homeowner's credit profile, current loan-to-value, the new loan term you choose (15-year, 20-year, 30-year), whether you take cash out, and current rate sheets at each lender. Two lenders may quote the same homeowner very different rates and closing cost — request multiple written quotes so you can compare the all-in cost side by side.
Rate, term and monthly payment trade-off
A shorter term (15-year) typically carries a lower rate but a higher monthly payment; a longer term (30-year) carries a higher rate but a lower monthly payment. Ask each lender to quote at least two term options so you can compare monthly payment against the total lifetime interest cost and pick the trade-off that fits your household.
Closing cost — and the break-even point
Refinance closing cost typically runs 2–5% of the loan amount (origination, appraisal, title, recording, prepaid interest). Divide that closing cost by the monthly payment savings to find the break-even month — if you plan to stay in the home past that month, the refinance may potentially save money over the long run. Ask each lender to spell out the closing cost so you can run this math on every quote.
Questions to ask each lender
Before a written refinance quote arrives, ask each lender: the rate and APR, the loan term, the closing cost itemized, whether discount points are included, the prepayment penalty (if any), the rate lock window, the funding timeline, and whether escrow waiver is available. Asking the same questions on every quote makes the side-by-side comparison clean.
Cash-out vs rate-and-term refinance
A rate-and-term refinance replaces the existing loan with a new one at a different rate or term — used to lower the monthly payment or shorten the loan. A cash-out refinance increases the loan balance and returns the difference in cash — used to tap equity for a remodel, debt consolidation, or other use. Cash-out typically carries a higher rate. Request quotes for both options so you can compare the cost of each path.
How to compare written refinance quotes
A clean refinance quote shows rate, APR, loan term, monthly payment, closing cost itemized, discount points (if any), and the rate-lock window. Loan Estimate forms make side-by-side comparison straightforward — request one from each lender on the same scenario so the comparison is apples to apples.
Rate lock — and what may shift the price before close
A rate lock holds the quoted rate for a set window (commonly 30–60 days) at no charge, with longer locks available for a fee. Without a lock, the rate can shift between the quote and close, which changes the monthly payment and the closing cost. Ask each lender about the lock window and the cost to extend it if your close slips.
Frequently asked questions
How many refinance quotes should I get?
Three written quotes from three lenders is a useful baseline. Request a Loan Estimate from each so the comparison on rate, APR, closing cost and monthly payment is line-by-line consistent.
How do I know if refinancing makes sense?
Divide the closing cost by the monthly payment savings to find the break-even month. If you plan to stay in the home past that month, the refinance may potentially save money over the long run. Ask each lender to run this calculation on the quote so you can compare.
Should I pay discount points to lower the rate?
It depends on how long you plan to keep the loan. Discount points are an upfront cost that buys down the rate — the longer you keep the loan, the more the lower rate may save. Ask each lender to quote the same scenario with and without points so you can compare the lifetime cost.
Quote and price information may change. We update this page monthly. Last update: May 2026. To contact us with feedback, email our team via the contact page.