The questions we hear most.

A common rule of thumb says refinancing is worth a look when market rates are about 2% below the rate on your current loan. But that rule doesn't fit every situation. If you want to take cash out, shorten your term, or drop mortgage insurance, a smaller rate difference can still make sense. The real test is how long it takes your monthly savings to repay your closing costs, and we'll run that math for you at no charge.

Discount points are an up-front payment you can choose to make at closing in exchange for a lower interest rate. Each point costs 1% of the loan amount and typically lowers the rate by about a quarter of a percent. Points pay off when you keep the loan long enough for the monthly savings to exceed what you paid.

Rates move every day. When you lock, your lender guarantees your interest rate for a set period, usually 30 to 60 days, so it can't change between your application and closing. Locking protects you if rates rise. If you'd rather gamble on rates falling, you can float, but the risk is yours.

An appraisal is a licensed appraiser's estimate of a home's fair market value. Lenders require one before a purchase or refinance closes so they know the loan isn't larger than the home is worth. It protects you, too, by confirming you're not overpaying.

When your down payment is less than 20% of the purchase price on a conventional loan, the lender will usually require PMI to offset the added risk. It's paid monthly as part of your mortgage payment. Once your balance drops to 80% of the home's original value, you can ask to have it removed, and it must be cancelled automatically at 78%.

Plan on pay stubs for the last 30 days, W-2s and tax returns for two years, three months of bank and investment statements, a government ID, and details on your current debts. Self-employed borrowers add business tax returns and a year-to-date profit and loss statement. Your loan originator will tell you exactly what applies to you, and our application checklist has the full list.

Closing day is the big one: the day you sign the papers that make the home yours (or complete your refinance). It usually takes one to two hours. A title company or closing attorney walks you through each document, you'll bring your ID and any funds due, the loan funds, and the keys are handed over. We'll prepare you for every step so nothing is a surprise.