Refinance
Refinance rates and options in Ohio — a refinance should pay for itself, or you shouldn't do it.
Every refinance costs money up front and saves money over time. The only question that matters is whether the second number beats the first before you sell, move, or refinance again. I'm Zach, a Cincinnati mortgage originator licensed in Ohio and California, and I run that break-even math before anything else — including on the files where the answer is 'keep the loan you have.'
Closings average about 13 days · No SSN or credit pull to start
The only refinance math that matters
Closing costs divided by monthly savings equals your break-even in months. That's it. If you will keep the loan longer than the break-even, refinance. If you won't, don't. Everything else on this page is context for that one fraction.
Closing costs on a refinance run 2–5% of the loan: lender fees, title, recording, prepaid interest and escrow setup. Ohio helps here — there is no conveyance fee on a refinance and no mortgage recording tax, so an Ohio refinance tends toward the low end of that range.
2–5%
Typical refinance closing costs (of loan)
80%
Max LTV, conventional & FHA cash-out
12 mo
Conventional cash-out: min. age of existing first mortgage
$0
Ohio conveyance fee on a refinance
Sources: Freddie Mac and LendingTree closing-cost guidance (2026); Fannie Mae Selling Guide B2-1.3-02/03; Ohio Revised Code 319.54 and 322.02.
Break-even, in months
Take a $260,000 loan and $5,500 in closing costs — a realistic Ohio figure. The break-even depends entirely on how much the new payment saves:
Example: a $260,000 balance at 7.25% costs $1,774 a month in principal & interest; at 6.25% it is $1,601 — a $173 monthly saving and a 32-month break-even on $5,500 of costs. Illustrative only.
The trap: resetting the clock. If you are 8 years into a 30-year loan and refinance into a new 30, you lowered the payment partly by adding 8 years of interest. I always quote the new loan at a term matching your remaining years — a 22-year or 20-year — so the comparison is honest. Sometimes the payment barely moves, and that is the real answer.
Rate-and-term versus cash-out
| Rate-and-term (limited cash-out) | Cash-out | |
|---|---|---|
| Purpose | Lower the rate, shorten or lengthen the term, drop mortgage insurance | Borrow against equity and receive cash at closing |
| Cash back allowed | Greater of 1% of the loan or $2,000 (Fannie Mae) | Everything above payoff and costs |
| Max loan-to-value | Up to program limits (97% conventional; 97.75% FHA) | 80% conventional (1-unit primary); 80% FHA; up to 100% VA (many lenders cap 90%) |
| Seasoning | Generally none beyond lender overlays | Conventional: first mortgage ≥12 months old + 6 months on title. FHA: 12 months owned and paid on time. VA: 210 days + 6 payments |
| Pricing | Best available | Slightly higher; adjusts with LTV and credit |
| Consider instead | — | A HELOC or fixed second if your current rate is below today's |
The cash-out question I ask every homeowner: what is your current rate? If it is below today's, a cash-out refinance re-prices your entire balance upward to borrow a smaller amount. On a $260,000 loan at 4.5%, pulling $50,000 by refinancing to 6.5% costs about $640 a month more than keeping the loan and adding a second mortgage. The HELOC page has that comparison in full.
Where refinance closing costs go
Illustrative breakdown on a $260,000 refinance. 'Prepaids' are not really a cost — they seed your new escrow account and cover interest to month-end, and your old escrow balance is refunded after payoff. Actual figures depend on lender, title company and closing date.
Refinancing out of mortgage insurance
This is the refinance that works even when rates have not dropped. FHA borrowers who put down less than 10% pay 0.55% a year in mortgage insurance for the life of the loan; on a $255,000 FHA loan that is about $117 a month that never goes away. Once the home is worth enough that a new conventional loan sits at or below 80% of value, a rate-and-term refinance removes the insurance entirely. With Greater Cincinnati's median at $329,450 in July 2026 and steady appreciation over the last several years, a lot of 2021–2023 FHA buyers already have the equity. If you are one of them, the savings on MIP alone can cover the closing costs in under three years even at the same rate.
Conventional borrowers don't need to refinance for this: under the Homeowners Protection Act you can request PMI cancellation at 80% of the original value with a good payment history, and it terminates automatically at 78%.
Streamline options if you already have FHA or VA
- FHA streamline: lower rate, minimal documentation, usually no appraisal, must show a net tangible benefit. Fast and cheap when rates move.
- VA IRRRL: 0.5% funding fee, minimal paperwork, usually no appraisal; requires 210 days since the first payment was due, six payments made, and a break-even of 36 months or less on the costs. Full detail on the VA page.
- 1 Day 1
Break-even conversation
Current balance, rate, payment, and how long you'll stay. Ten minutes and no credit pull. If it doesn't pencil, I say so.
- 2 Week 1
Application + lock
Documentation reviewed, rate locked, appraisal ordered — or waived, when the automated system allows it.
- 3 Week 2–3
Underwriting
Title and payoff ordered. Ohio adds no conveyance fee or mortgage tax on a refinance, so costs stay predictable.
- 4 Closing
Sign, rescind window, fund
On a primary residence you have three business days to cancel after signing; the new loan funds after that. My closings average about 13 days from application.
When I will tell you not to refinance
- The break-even is longer than you'll keep the loan. Moving in two years? A 40-month break-even is a loss.
- Your current rate is below today's and you only want cash. Use a second mortgage; protect the first.
- You're mostly buying a lower payment by adding years. If the honest same-term comparison saves little, the refinance is an illusion.
- The savings are tiny. A quarter-point on a small balance rarely covers the costs.
Rates in Ohio move with the national market, and the Federal Reserve's next meeting is September 16, 2026. If the math doesn't work today, I'll tell you the rate at which it does, and I'll reach out when we get there — without you having to watch the news.
Figures current as of September 2026 — programs and limits change; Zach re-verifies at application.
Napkin math, upgraded
How many months until this refinance pays for itself?
Closing costs divided by monthly savings. Under three years is usually worth doing; past that, be sure you will keep the loan.
Illustrative estimates only — not a rate quote, an offer, or a commitment to lend. Your actual figures depend on your full scenario. More tools on the calculators page.
Real questions
Things people ask Zach about this
When does refinancing make sense in Ohio?
When the monthly savings recover the closing costs well before you expect to sell or refinance again. Closing costs run 2–5% of the loan; on a $260,000 balance that is roughly $5,200 to $13,000. Save $200 a month on $5,500 of costs and you break even in 28 months. If you plan to be in the house five years, that refinance pays. If you might move in two, it doesn't. Rate alone never answers the question.
What is the difference between a rate-and-term and a cash-out refinance?
A rate-and-term (Fannie Mae calls it 'limited cash-out') replaces your existing mortgage with a new one at a better rate or term and returns at most the greater of 1% of the loan or $2,000 in cash. A cash-out refinance borrows more than you owe and hands you the difference. Cash-out carries slightly higher rates and stricter loan-to-value caps: 80% for conventional and FHA, up to 100% of value for VA (many lenders cap it at 90%).
How soon after buying can I refinance?
Rate-and-term refinances usually have no waiting period beyond lender overlays. Conventional cash-out requires the existing first mortgage to be at least 12 months old, measured note date to note date, and at least one borrower on title for six months. FHA cash-out requires 12 months of ownership and on-time payments. A VA IRRRL requires 210 days since your first payment was due and six payments made.
Will I pay Ohio's conveyance fee when I refinance?
No. Ohio's conveyance fee — $1 per $1,000 at the state level plus up to $3 per $1,000 county permissive, $3 total in Hamilton County — is charged on deed transfers. A refinance records a new mortgage, not a deed, so no conveyance fee applies, and Ohio has no mortgage recording tax either. Your refinance costs are lender, title and recording fees, plus prepaid interest and escrow setup.
Can I refinance to get rid of mortgage insurance?
Yes, and it is one of the best reasons to refinance. Conventional PMI can be cancelled at 80% loan-to-value without refinancing, but FHA mortgage insurance on a loan with less than 10% down lasts the life of the loan — the only exit is a conventional refinance once you have 20% equity. With Cincinnati values up and a few years of payments, plenty of 2021–2023 FHA buyers are there now.
What is an FHA streamline or VA IRRRL?
Both are simplified refinances for borrowers already in those programs: lower rate, minimal documentation, usually no appraisal. The FHA streamline requires a net tangible benefit. The VA Interest Rate Reduction Refinance Loan carries a 0.5% funding fee and requires that your closing costs be recouped within 36 months. They are fast and cheap when rates drop, and I will tell you the month they start making sense.
No pressure, no credit pull
Run your refinance scenario by Zach.
Send the shape of it — what you’re buying, roughly what you earn, where you’re at. Zach reads every one personally and gets back to you the same day, nights and weekends included.
Nothing sensitive lives on this form: no Social Security number, no paperwork, and your credit isn’t touched until you say so. Equal Housing Opportunity. Zachary Bates, NMLS #2687902 · Coast 2 Coast Mortgage, NMLS #376205.