Should You Refinance? A Tennessee Homeowner’s Guide to the Numbers

When rates move, many Tennessee homeowners ask the same question: is it worth refinancing? The answer comes down to math and your plans for the home.

Calculate your break-even point

Divide your total refinance closing costs by your monthly savings. If a refinance costs $5,000 and saves $250 per month, you break even in 20 months. If you plan to stay longer than that, the refinance may make sense. Try our refinance break-even calculator.

Common reasons to refinance

• Lower your interest rate and monthly payment
• Shorten your term (for example, 30 years to 15)
• Remove FHA mortgage insurance by moving to a conventional loan
• Take cash out for renovations or debt consolidation
• Switch from an adjustable rate to a fixed rate

What refinance closing costs include

Expect lender fees, appraisal, a lender’s title insurance policy, settlement fees, recording fees, and Tennessee mortgage tax on new money borrowed. Lenders may offer reissue or refinance rates on title insurance in some cases — ask.

How a refinance closing works

The title company searches title, orders your current loan payoff, prepares documents with your lender, and schedules signing — at our office or a mobile signing. For most primary-residence refinances, federal law provides a three-business-day right of rescission before funds disburse.

Watch out for

• Resetting a nearly paid-off loan to 30 years
• Rolling high costs into the loan without noticing
• Cash-out refinances that turn short-term debt into long-term debt

Related: Mortgage Calculators · Closing Services · Title Insurance

This article is general information, not legal, tax, or financial advice. Every transaction is different — consult your attorney, lender, or tax professional about your situation.