Purchase vs Refinance

You're buying a primary residence, second home, or investment property and need financing to close.

Your lender evaluates income, assets, credit, and the property itself. Down payment requirements depend on loan type — as low as 0% for VA, 3.5% for FHA, and typically 3–20% for conventional.

Timeline is driven by your purchase contract. Most closings happen in 30–45 days from offer acceptance.

Rate-and-term refinance: lower your interest rate, change your loan term, or switch from adjustable to fixed.

Cash-out refinance: tap built-up equity for renovations, debt consolidation, or other goals.

A common rule of thumb: refinancing is worth considering if you can drop your rate by at least 0.5–0.75% and plan to stay in the home long enough to recoup closing costs.

Purchase loans are time-pressured and tied to a contract. Refinances are flexible — you choose when to start.

Refinances don't require a down payment, but they do require equity. Most lenders want you to retain at least 20% equity after a cash-out.

Closing costs are similar (typically 2–5% of the loan), but on a refinance they can often be rolled into the new loan.