Refinance | 804Mortgage

🔄 Mortgage Refinancing · Richmond VA

Refinance Your Richmond Home.
Lower Rate. More Equity. Less Payment.

Whether you want to lower your monthly payment, shorten your loan term, or tap your home equity — 804Mortgage helps Richmond homeowners refinance with a fast, transparent process and no runaround.

✓ Rate & Term Refinance

✓ Cash-Out Refinance

✓ VA IRRRL Streamline

✓ FHA Streamline

Refinancing — Quick Guide

Is Now the Right Time to Refi?

Rate drop needed0.5–1%+ typically

Typical closing costs2–5% of loan amount

Break-even range12–36 months typically

Cash-out max LTV80% conventional

Min. credit score620+ (conventional)

Run My Numbers →

Which Type of Refinance Is Right for You?

There's no one-size-fits-all answer. Here are the four most common refinance options and when each one makes sense.

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Rate-and-Term Refinance

The most common type — lower your rate, change your term, or both

A rate-and-term refinance replaces your existing mortgage with a new one at a lower interest rate, a different loan term, or both. Your loan balance stays roughly the same — the goal is reducing your monthly payment or total interest paid over the life of the loan.

Example: Refinancing from a 7.25% 30-year loan to a 6.5% 30-year loan on a $350,000 balance saves roughly $155/month — about $1,860/year.

Best for

✓ Rates have dropped since you bought
✓ Your credit score has improved
✓ You want to switch from ARM to fixed
✓ You want to shorten to a 15-year term

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Cash-Out Refinance

Tap your home equity and receive cash at closing

A cash-out refinance replaces your mortgage with a larger loan — and you receive the difference in cash. The funds can be used for home improvements, debt consolidation, education, or other major expenses. Most conventional lenders allow cash-out up to 80% of your home's value.

Example: Home worth $500,000, current balance $280,000. You refinance to $380,000 and receive $100,000 cash at closing — while potentially improving your rate.

Best for

✓ Significant home equity built up
✓ Home improvement projects
✓ Consolidating high-interest debt
✓ Major life expenses (education, medical)

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VA IRRRL (Streamline Refinance)

The simplest refinance available — veterans only

The VA Interest Rate Reduction Refinance Loan (IRRRL) allows eligible veterans to refinance an existing VA loan with minimal paperwork, no appraisal in most cases, and reduced documentation requirements. It's designed specifically to lower your VA loan rate quickly and efficiently.

If you have an existing VA loan and rates have dropped, this is often the fastest and lowest-cost path to a better rate.

Best for

✓ Existing VA loan holders
✓ Rates have dropped since original VA loan
✓ Want minimal paperwork and fast close
✓ No appraisal needed in most cases

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FHA Streamline Refinance

Low-documentation refinance for existing FHA borrowers

The FHA Streamline Refinance allows homeowners with an existing FHA loan to refinance with reduced documentation, no income verification required in most cases, and no appraisal needed. The new loan must result in a "net tangible benefit" — typically a lower combined rate and MIP payment.

If you have a current FHA loan and want a lower rate with minimal hassle, this is your most efficient option.

Best for

✓ Existing FHA loan holders
✓ Rates have dropped since original FHA loan
✓ No income re-verification needed
✓ No appraisal required in most cases

Should You Refinance? Run the Numbers.

Enter your current loan details and target rate to see your monthly savings and break-even point.

Current Loan Balance ($)

Current Interest Rate (%)

New Target Rate (%)

Estimated Closing Costs ($)

Mo. Savings$155

Yr. Savings$1,860

Break-Even39 mo.

Get My Actual Rate Quote →

When Refinancing Makes Sense

Refinancing isn't always the right move. Here's when it typically is — and one situation where it usually isn't.

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Your Rate Has Dropped Significantly

If you can lower your rate by 0.75% or more and plan to stay in the home long enough to recoup closing costs, refinancing often makes financial sense.

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You Want a Shorter Term

Refinancing from a 30-year to a 15-year loan means higher monthly payments but far less total interest paid. A powerful move if your income has grown.

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You Need to Access Equity

If your home has appreciated significantly, a cash-out refinance can be a cost-effective way to access funds compared to personal loans or HELOCs.

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You Want to Remove PMI

If your home value has increased and you now have 20%+ equity, refinancing can eliminate PMI even if your rate doesn't change much — saving $100–$300/month.

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You're on an Adjustable Rate

If you have an ARM and rates have risen or your fixed period is ending, refinancing into a fixed-rate mortgage gives you predictability and protection.

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When It Usually Doesn't Make Sense

If you're planning to sell within 2–3 years and won't recoup closing costs, or if the rate savings are minimal, refinancing may cost you more than it saves. We'll tell you honestly.

How Refinancing Works With 804Mortgage

Straightforward process, transparent costs, and a local team that keeps you informed.

Run Your Numbers

Call us or apply online. We review your current loan, target rate, and closing cost estimate to confirm refinancing makes financial sense for you.

Apply & Lock

Once you decide to proceed, we submit your application and lock your rate. We'll clearly explain every cost — no surprises at closing.

Appraisal & Review

Most refinances require a new appraisal. VA IRRRL and FHA Streamline often skip this step. We walk you through what's needed for your specific loan type.

Close & Save

Sign your new loan documents and your lower payment kicks in. Typical refinance closing takes 3–6 weeks from application.

Refinancing — Common Questions

How much does refinancing cost in Virginia? +

Refinancing typically costs 2–5% of the loan amount in closing costs. On a $300,000 loan that's $6,000–$15,000. These costs include lender fees, appraisal, title search, title insurance, and prepaid items like homeowners insurance and property taxes. Some refinance programs offer no-closing-cost options where costs are rolled into your rate or loan balance — though this increases what you pay over time. We'll provide a complete, transparent cost breakdown before you commit to anything.

How do I know when to refinance? +

The classic rule of thumb is to refinance when you can lower your rate by at least 0.75–1% and plan to stay in the home long enough to recoup closing costs — typically 2–3 years. But the right answer depends on your specific numbers: loan balance, rate difference, closing costs, and how long you plan to stay. The break-even calculator above gives you a quick estimate, but call us for a precise analysis of your situation.

What credit score do I need to refinance? +

For a conventional refinance, most lenders require a minimum credit score of 620, with the best rates available at 740+. For an FHA Streamline, you typically need at least 580, and the process is more flexible on credit documentation. For a VA IRRRL, credit requirements vary by lender but are generally more lenient. We'll review your current credit profile and tell you exactly where you stand before you apply.

Can I refinance if I just bought my home? +

Yes — there's generally no minimum waiting period for a conventional rate-and-term refinance. However, for cash-out refinances, many lenders require you to have owned the home for at least 6 months (the “seasoning” requirement). For FHA Streamline and VA IRRRL, you must have made at least 6 months of payments on your current loan. If you bought recently and rates have since dropped, call us — it may still make sense depending on the numbers.

What is a cash-out refinance and how does it work? +

A cash-out refinance replaces your existing mortgage with a new, larger loan — and you receive the difference in cash at closing. For example, if your home is worth $500,000 and you owe $280,000, you could refinance into a $380,000 loan and receive $100,000 cash. The maximum you can cash out is typically 80% of your home's appraised value for conventional loans. The funds can be used for anything: home improvements, debt consolidation, education, or other major expenses.

What is a VA IRRRL and who qualifies? +

The VA Interest Rate Reduction Refinance Loan (IRRRL), also called a VA Streamline Refinance, allows eligible veterans with an existing VA loan to refinance to a lower rate with minimal paperwork. In most cases, no appraisal is required, income verification is simplified, and the process closes faster than a standard refinance. You must have an existing VA loan, and the new loan must result in a lower interest rate or move you from an adjustable to a fixed rate. If you have a VA loan and rates have dropped, this is often the fastest path to savings.