A lower rate can catch your eye. The useful question is what the new loan would cost over the time you expect to keep it.

What should you compare?

  • The interest rate and whether it can change.
  • Upfront fees and other closing costs.
  • The payment amount and loan length.
  • Any early-payment charge or large final payment.
  • The total cash needed to replace the existing debt.

Does a lower payment mean a cheaper loan?

Not always. A longer repayment period can lower a payment while adding more time in debt. Compare total costs as well as the monthly amount.

What if your plan depends on a later refinance?

Test the project without assuming that rates will fall or that another lender will approve it. Include a backup plan for a delayed sale, refinance, or change in property value.

Where can you check the terms?

The CFPB’s interest-rate guide explains why the rate is only one part of the cost. For a Grand Funding request, ask for deal-specific terms and compare them with your current loan.