Should I refinance my mortgage, or tap my home equity?

Should I refinance my mortgage? Maybe, and the answer is a number, not a feeling. People refinance a home loan for four reasons: a lower rate, getting rid of mortgage insurance, changing the term, or taking cash out. Every one of them gets the same first test from me: the net cost after lender credits, divided by the true monthly savings. If that break-even does not fit comfortably inside the time you will keep the loan, the refinance is a cost, not a savings.

Start with when to refinance if a lower rate is the goal. It covers the break-even, the term-reset trap, escrow refunds and when to wait, and the calculator runs the same math on your numbers. If you have a low rate and need cash, read the HELOC pages before the cash-out page, because a cash-out reprices everything you already owe. If your loan is FHA or VA, a streamline is the shortest road to a lower payment, with its own rules and its own traps.

If the real problem is a payment you cannot make, a refinance by itself won’t fix it. Start with what to do when you’re behind on your mortgage instead.

This section covers home loans only, not car or student loans. You only come back to me if you win, so every page here shows the math that might talk you out of it.