How do I know if I will recoup closing costs?

The sketch on this page does a simple break-even with numbers you enter. Bring that into a conversation. A Hancock loan officer should rerun it on your actual loan and walk through the options with you.

Will refinancing restart my loan term?

If you take a new 30-year term, yes, you may lower the payment and pay interest longer. You can often choose a shorter term. Ask to see both.

Can I roll closing costs into the new loan?

Sometimes. That reduces cash at the table and raises the new loan amount, so the monthly savings shrink. The sketch lets you toggle it. Either way the costs are real.

Is this my Hancock payment or a reason to apply?

No. The numbers here help you see the shape of the decision. Taxes, insurance, points, credits, and program rules are not fully modeled. A Hancock loan officer should walk through the options with you and price the file.

Refinance

Should I refinance?

Review the information on this page, then contact a Hancock loan officer to walk through the options with you.

Refinancing

A lower rate is not automatically a win. Closing costs, how long you will keep the home, and whether you are stretching the term all matter. This page is here to make those questions clearer. A Hancock loan officer is more useful still: they walk through the options with you, against your actual loan.

Use the sketch to get oriented. Do not wait until you have already decided, then look for someone to execute it. The useful next step is a conversation, not applying because a flyer arrived.

01
This page helps you see costs, time in the house, and what a lower rate does not automatically buy.
02
A Hancock loan officer should walk through the options with you, against your loan, not a flyer.
03
A new 30-year loan restarts the clock even if you have already paid for a decade.
04
Cash-out is a different decision from rate-and-term. Do not mix them by accident.

Your goal

Name it before you chase a rate.

Break-even sketch

Principal and interest, plus any mortgage insurance you enter. Taxes and insurance stay in the house either way.

Current loan

BalanceRate%Years leftMortgage insurance / month

New loan

Example new rate%

New term

New mortgage insurance / monthEstimated closing costsYears you plan to stayRoll estimated costs into the new loan. Cash at close drops; the payment does not.

Illustrated new P&I

$1,867 / month

$230 less per month vs $2,098 now

New loan amount: $320,000
Cash needed at close: $8,000
Break-even on costs: 2 yr 11 mo
Scheduled interest, current loan: $359,679
Scheduled interest, new loan: $352,276
Balance after 7 years, current: $281,364
Balance after 7 years, new: $285,547

Worth a real conversation

In this illustration, estimated costs are recouped before you said you would leave. That is a start, not a lock and not an approval.

Find a Loan Officer

This calculator is an educational illustration only. It is not a rate quote, pre-qualification, pre-approval, or commitment to lend. Interest rates, taxes, insurance, and mortgage insurance are assumptions you enter or we estimate. They are not Hancock’s current pricing. Actual payments vary. Hancock Mortgage is a DBA of Gold Star Mortgage Financial Group, Corp., NMLS #3446. Equal Housing Lender.

When a refinance can help

You will stay past break-even
Costs divided by monthly savings is the first filter. If you may sell or refinance again before that, you are paying to shuffle paper.
The goal is named
Payment, term, dropping mortgage insurance, or cash for a documented use. Mixing those without saying so is how people end up with a loan they like less.
You are not stretching the clock by accident
A new 30-year loan can drop the payment and cost more interest. If that trade is intentional, fine. If it is a surprise, it is not a win.

When it usually does not

A flyer rate with no costs
Pricing is file-specific. Points, title, appraisal, and prepaid items belong in the comparison, not in the ad.
Cash-out for an unnamed lifestyle gap
Equity is expensive money once it is in a first mortgage. A purpose with a payoff plan is a different conversation.
Two years left in the house
Even a real rate drop can lose to closing costs if the hold period is short. Moving is not a refinance strategy.

Rate-and-term is not cash-out

Rate-and-term changes the rate and/or length of the loan without taking substantial cash out. Cash-out converts equity into cash and is underwritten more tightly. Credit, equity, and the use of funds all get more attention.

Both are refinances. They are not the same decision. If you need cash and a lower payment, say both out loud so the officer does not optimize for the wrong one.

A new 30-year loan restarts the clock

If you have already paid ten years, a fresh 30-year term can drop the payment and cost more interest over the life of the loan. You can often choose 15 or 20 instead. Ask to see both before you treat the lighter month as the whole answer.

VA and other streamline paths still have a test

Some programs have lighter documentation when you are already in the right kind of loan. Lighter paperwork is not the same as “always refinance.” Costs, residual income, funding fees, and whether you occupy the home still matter. Eligibility is a fact. Confirm it.

Talk it through

Find a loan officer

Fees

Closing costs

Program

Refinance overview

From this guide

Common questions

Nobody on this website knows the future of rates. Decide based on this loan, these costs, and how long you will stay, not a forecast.

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A family gathered on the porch of their home

Ready when you are

The house is the point.

Whether you’re buying your first home, moving into your next one, refinancing, or exploring your options, we’re here to help you figure out the next step.