new american funding refinance rates explained for homeowners

How the rates are set

Refinance rates at New American Funding typically reflect broader market forces-Treasury yields, mortgage-backed securities, and lender risk models-plus your profile. Lenders weigh credit score, home equity, loan-to-value, and debt-to-income. A higher score and solid equity tend to unlock a lower annual percentage rate.

What to compare before you lock

Beyond the headline rate, look closely at the APR, discount points, and total cash to close. Ask whether the quote is for a rate-and-term refinance or a cash-out, since pricing tiers differ. Clarify how long a rate lock lasts and whether there is a float-down option if markets improve.

• Rate versus APR: APR folds in fees for a truer cost comparison.
• Points: Paying points can reduce the rate; break-even matters.
• Loan term: Shorter terms often carry lower rates but higher payments.
• Closing costs: Lender credits can offset fees at a slightly higher rate.

To estimate savings, compare your current payment with a quoted scenario and calculate the break-even months. If refinancing shortens the term or removes mortgage insurance, the long-run impact can be substantial.