A rate-and-term refinance swaps your current mortgage for a better one — to lower your rate or payment, shorten your term, drop mortgage insurance, or move from an ARM to a fixed rate. No cash out, just a cleaner loan. Beto runs the break-even math so you only refinance when it actually pays — and points you to the streamline or FHA-to-conventional move when it fits.
Refinancing isn't only about chasing a lower rate. Done for the right reason, it can reshape your loan around where your life is now.
If rates have dropped since you bought, a new loan at today's rate can cut your monthly payment and your total interest over time.
Reached ~20% equity? Refinancing can remove PMI — or get an FHA borrower out of life-of-loan MIP entirely by switching to conventional.
Move from a 30-year to a 15- or 20-year term to build equity faster and save big on lifetime interest — often with a lower rate too.
If your adjustable-rate loan is about to reset, refinancing into a fixed rate locks in predictable payments for good.
Combine a first and second lien, or move off a loan you no longer like, into one clean payment you understand.
That's a cash-out refinance — a different product with its own rules. See cash-out →
A refinance is worth it when the monthly savings repay the closing costs before you'd sell or refinance again. Plug in your numbers — it updates instantly.
Compares principal & interest at your current rate vs. the new rate on the same balance. Taxes and insurance don't change, so they're left out.
Estimate only, for planning. A break-even ignores that refinancing can reset your payoff timeline; lowering your rate while keeping a similar term is what builds real savings. Actual rates, costs, and terms depend on your file and the lender. Not an offer.
There's more than one path, and the cheapest one depends on your current loan. Here's the lay of the land — Beto picks the right lane for you.
The standard refi: a new conventional loan at a lower rate or shorter term. Once you're at ~20% equity, it also cancels PMI. Needs ~620+ credit and an appraisal.
Already have an FHA loan? Lower your rate with no appraisal and no income docs in most cases. Fast and low-hassle — your payment history does the talking. Keeps FHA mortgage insurance.
The big one. If your FHA loan carries life-of-loan MIP and you've reached ~20% equity, refinancing to conventional removes mortgage insurance entirely — often the biggest savings of all. More on this below.
Lock in a predictable payment before your adjustable rate resets. Works as a conventional or FHA refinance depending on your current loan.
For veterans with a VA loan — a streamlined rate-reduction refinance with usually no appraisal or income docs. We cover it in depth on the VA page.
Want to pull equity out as cash, not just improve your loan? That's a separate product with its own Texas rules — and sometimes a HELOC beats it.
Here's a fact that surprises most FHA homeowners: on loans with less than 10% down, that monthly mortgage insurance never goes away on its own — no matter how much equity you build.
With under 10% down, MIP lasts the life of the loan. You could have 30%, even 40% equity and still pay it every month — for decades. A streamline lowers your rate but keeps the MIP.
Once you hit ~20% equity and ~620+ credit, switching to a conventional loan removes mortgage insurance entirely. No PMI, no MIP — that monthly charge simply disappears.
A full refinance underwrites much like a purchase; streamlines are lighter. Here's the typical shape — the streamline routes skip a lot of this.
FHA Streamline and VA IRRRL also have a short seasoning period (you've made several payments on the current loan). Beto confirms you're eligible and that the math works before you pay for anything.
If any of these is you, a quick conversation could surface real monthly savings — or confirm you're already in the best spot.
If you locked your loan during a high-rate stretch, even a modest drop today could meaningfully cut your payment.
Paying life-of-loan MIP with 20%+ equity built up? Switching to conventional could erase it. This is the page's headline move.
If your adjustable rate is nearing its reset, locking a fixed rate now removes the uncertainty from your budget.
Cash flow improved since you bought? Refinancing into a 15- or 20-year term builds equity faster and saves on interest.
Alberto Moravia — Beto the Broker — is a licensed mortgage broker, TREC Certified Instructor, and proud San Antonio resident who runs the break-even math honestly: if refinancing won't actually save you money, he'll tell you to wait.
As an independent broker at Edge Home Finance LLC, Alberto shops 100+ wholesale lenders to find the lowest-cost refinance — conventional, FHA streamline, FHA-to-conventional, or pointing you to a VA IRRRL or cash-out when that's the better fit. Straight answers, in English, Spanish, or Portuguese.
A free 10-minute call with Beto. Share your current rate, balance, and loan type, and he'll run the break-even, compare conventional, FHA streamline, and FHA-to-conventional, and tell you the honest answer — refinance now, or wait. No pressure.