If you’re a homeowner in Las Vegas, chances are you’ve heard about refinancing — but is it right for you? Whether you’re looking to lower your rate, tap into your home’s equity, or remove mortgage insurance, refinancing can be a powerful financial tool when done at the right time.
At Drennen Home Loans, we help homeowners evaluate their refinance options every day. Here’s what you need to know about when, why, and how to refinance your mortgage.
What Is Mortgage Refinancing?
Refinancing means replacing your current mortgage with a new loan, ideally one that offers better terms or serves a new purpose. You still keep your home — but the loan attached to it changes.
Common refinance goals include:
- Lowering your monthly payment
- Reducing your interest rate
- Switching from an adjustable-rate to a fixed-rate mortgage
- Removing mortgage insurance (PMI)
- Accessing home equity through a cash-out refinance
- Changing the loan term (e.g., from 30 years to 15)
Top Reasons to Refinance Your Home in Las Vegas
✅ 1. Lower Your Interest Rate
If your current mortgage rate is higher than today’s market average, refinancing could save you thousands over the life of the loan.
Example: Dropping from 6.5% to 5.25% on a $400,000 loan could save over $250 per month.
✅ 2. Convert Equity Into Cash
With rising property values in Las Vegas, many homeowners are sitting on significant equity. A cash-out refinance lets you convert that equity into money for:
- Renovations or upgrades
- Paying off high-interest debt
- Starting a business or funding college
- Emergency savings
✅ 3. Get Rid of PMI
If you originally bought your home with less than 20% down, you may be paying private mortgage insurance (PMI). Refinancing into a new loan with 20% equity can remove this monthly cost.
✅ 4. Shorten Your Loan Term
Want to pay off your home faster? Refinancing from a 30-year loan to a 15- or 20-year loan can reduce your total interest — even if monthly payments go up slightly.
✅ 5. Switch Loan Types
Refinancing lets you move from an FHA loan to a Conventional loan to eliminate FHA mortgage insurance. Or, switch from an adjustable-rate mortgage (ARM) to a stable fixed-rate mortgage.
When Should You Consider Refinancing?
You might be ready to refinance if:
- You’ve had your current mortgage for 6+ months
- Your credit score has improved since buying your home
- Your home has gained significant value
- You want to lower monthly payments or access cash
- You plan to stay in the home for at least 3–5 more years
Tip: You don’t have to wait for rates to “crash” — many refinances are still worth doing based on equity and improved credit alone.
Types of Refinance Loans
- Rate-and-Term Refinance
Replace your existing loan with a new one at a better rate, different term, or both. - Cash-Out Refinance
Borrow more than your current loan balance and take the difference in cash. - FHA Streamline Refinance
Quick, low-document refinance for existing FHA loan holders. No appraisal or income verification required. - VA IRRRL (Interest Rate Reduction Refinance Loan)
Streamlined refinance for VA loan holders with reduced costs and no appraisal needed.
What’s the Refinance Process Like?
Refinancing is usually faster and simpler than buying a home:
- Apply for pre-approval (we’ll review your current loan and goals)
- Choose your loan type and rate
- Get an appraisal (sometimes waived)
- Submit documents (income, assets, etc.)
- Close your new loan and start saving!
Costs to Consider
Refinancing does come with closing costs, which can include:
- Title and escrow fees
- Lender charges
- Appraisal (if required)
- Prepaid interest and taxes
These can often be rolled into the new loan or offset by your monthly savings.
Refinancing FAQs
How much equity do I need to refinance?
Most conventional refinances require at least 5–20% equity, but FHA and VA options are more flexible.
Will refinancing hurt my credit?
You may see a small dip from the hard inquiry, but long-term savings usually outweigh this.
How long does the refinance process take?
Most refinances at Drennen Home Loans close in 2–4 weeks depending on the complexity.
Can I refinance if I’m self-employed or have variable income?
Yes — we work with all types of borrowers and help you prepare the right documentation.
Why Work With Drennen Home Loans?
- Fast pre-approvals and expert guidance
- Local Las Vegas expertise
- Access to multiple loan programs (Conventional, FHA, VA, Jumbo)
- Personalized cost breakdowns and advice
- We handle the paperwork and make it stress-free
We’ll show you whether refinancing makes sense — and if it doesn’t, we’ll tell you honestly.
Let’s See If a Refinance Can Work for You
If you’re curious about your options or want to know how much you could save, we’re here to help. Let’s explore whether a refinance is right for your situation — no pressure, just clarity.
