By Duane Buziak, NMLS #1110647. If you want to refinance your current mortgage for a lower payment, the work comes down to seven decisions made in order: your goal, your credit, your equity, your program, your quote, your break-even date, and your closing. This guide walks Glen Allen, Short Pump, and Henrico homeowners through each one, with the math done on a real-sized example. You finish with a clear yes or no on whether a refinance saves you money. Before you start, gather your latest mortgage statement, two recent pay stubs, your last two years of W-2s, and a rough idea of what your home would sell for.
Steps in this guide:
- Step 1: Define the payment goal and find your current numbers
- Step 2: Check your credit without a hard inquiry
- Step 3: Estimate your home equity and loan-to-value
- Step 4: Choose the right refinance program for your loan
- Step 5: Shop rates and compare Loan Estimates side by side
- Step 6: Run the break-even math before you commit
- Step 7: Lock, submit documents, and close
- Refinance questions Glen Allen homeowners ask
Step 1: Define the Payment Goal and Find Your Current Numbers
Open your latest mortgage statement and write down four figures: your interest rate, your remaining balance, your remaining term, and whether private mortgage insurance (PMI) or FHA mortgage insurance is included in the monthly payment. Those four numbers decide almost everything that follows.
Here is a worked illustration. Suppose a Twin Hickory homeowner owes $360,000 at 7.0% on a 30-year loan. Principal and interest come to about $2,395 a month. Now suppose that homeowner refinances the same $360,000 into a new 30-year loan at 6.0%. Principal and interest drop to about $2,158. The difference is roughly $237 a month, or about $2,840 a year. Both rates are illustrative, not current quotes.
Next, decide what “lower” means to you. You have three possible goals, and they pull in different directions:
- Lowest monthly payment: usually means a new 30-year term.
- Lowest total interest: usually means keeping or shortening your term, even if the payment falls less.
- Shorter term: a 20- or 15-year loan can cost less overall but often raises the payment.
Resetting to a fresh 30-year term can lower your payment while raising the total interest you pay, because you are stretching the balance over more years. A longer term is not free.
One misconception to clear up now: the payment drop is not your savings. Your savings are what remains after you subtract the closing costs of the new loan, which Step 6 covers.
Step 2: Check Your Credit Without a Hard Inquiry
Duane Buziak offers Free No Touch Credit Services, including the NoTouch Credit Pull, a soft credit pull mortgage review that lets you see where you stand before anything touches your score. At this stage it is a no credit hit mortgage application step: you get a read on your profile without a hard inquiry. A full credit report is pulled later, once you choose to move forward with a formal application.
The credit tools on this site use Vantage Score 4.0. When you review your results, look at three things:
- Score tier: pricing generally improves as your score moves into higher tiers, so knowing yours tells you whether to refinance now or spend a few months improving it first.
- High card balances: paying revolving balances down before an application can lift your score, and it also lowers the monthly debt that counts against you.
- Errors: a wrong late payment or an account that is not yours should be disputed early, since corrections take time.
Score requirements vary by loan program and change over time, so I will not hand you a fixed minimum here. Duane Buziak can tell you where you stand for the program you are considering when he reviews your file.
One mistake to avoid from now until closing: do not open new credit or make large purchases. A new car loan or a furniture financing plan can change your debt-to-income ratio and your score, and underwriters often recheck both shortly before closing.
Step 3: Estimate Your Home Equity and Loan-to-Value
Loan-to-value (LTV) is your loan balance divided by your home’s estimated value. Take a Wyndham homeowner who owes $360,000 on a home worth about $450,000: $360,000 divided by $450,000 is 0.80, so the LTV is 80%. If the same house were worth $500,000, the LTV would be 72%.
Lower LTV generally earns better pricing. On a conventional loan, it can also mean you can drop PMI. The rules for when PMI is required or removable are specific, so check the Consumer Financial Protection Bureau’s page on private mortgage insurance before relying on any rule of thumb, including mine.
For a rough value, look at recent sales of similar homes near you in Innsbrook, Twin Hickory, Wyndham, or wherever you live. Zillow, Redfin, and Realtor.com all show nearby sold prices. Treat their automated estimates as starting points only. The appraisal decides the figure the loan is actually built on, and it can come in higher or lower than what you expected.
A side note: cash-out refinances are available up to 90% LTV through Duane Buziak, but this guide stays focused on rate-and-term refinancing, where you change the rate or term without taking equity out.
Step 4: Choose the Right Refinance Program for Your Loan
The program you choose should follow the loan you already have. Most homeowners with a conventional loan use a conventional rate-and-term refinance. If you have an FHA loan, an FHA refinance may fit. Eligible veterans with a VA loan can look at the Interest Rate Reduction Refinance Loan (IRRRL), which VA explains on its IRRRL page.
| Program | Best for | Mortgage insurance or funding fee | Typical documentation | Key tradeoff |
|---|---|---|---|---|
| Conventional rate-and-term | Homeowners with solid credit and meaningful equity | PMI may apply at higher LTV; may be avoidable or removable with more equity | Pay stubs, W-2s, bank statements, appraisal in most cases | Best pricing goes to stronger credit and lower LTV |
| FHA refinance | Existing FHA borrowers; those with lower credit or less equity | FHA mortgage insurance premiums apply; confirm current structure at HUD | Varies; some FHA-to-FHA options reduce paperwork | Mortgage insurance can last a long time and offset rate savings |
| VA IRRRL | Eligible veterans with an existing VA loan | Reduced VA funding fee; confirm the current percentage at VA | Often lighter than a full refinance | Meant to lower rate or payment; limited options for taking cash out |
Fees, insurance rates, and limits change. Before you decide, verify the current FHA details at HUD.gov and the VA details at VA.gov. Everything in the table reflects general program design as of this writing, not a quote.
Loan size matters too. As of this writing, the baseline 2026 conforming loan limit is $832,750, which I understand applies in Henrico County. Confirm it against the Federal Housing Finance Agency’s current announcement before you rely on it. Most Glen Allen and Short Pump balances sit well below that line, but larger loans can price differently.
Step 5: Shop Rates and Compare Loan Estimates Side by Side
As a mortgage broker, Duane Buziak can shop hundreds of wholesale loan sources at one time. In practice, that means one conversation produces many pricing options, instead of you walking into a single institution and accepting whatever it offers. You can still compare against a local alternative. Courtney Ficken at First Home Mortgage is one Glen Allen-area option, and getting a quote there is a reasonable way to test any offer.
To make the comparison fair, request Loan Estimates on the same day, for the same loan amount, the same term, and the same rate-lock period. Rates move daily, so quotes taken a week apart are not comparable.
When the Loan Estimates arrive, read three lines first:
- Interest rate: and whether it is locked or floating.
- Origination charges and third-party services: the fees paid to the broker’s side and to appraisers, title, and others.
- The Section A through C total: your estimated cost of getting the loan, before prepaid items and escrow.
A low rate paired with high charges can cost more than a slightly higher rate with lean fees. The CFPB’s Loan Estimate explainer shows exactly where each item sits on the form.
For context on where the market stands, the Freddie Mac Primary Mortgage Market Survey publishes a weekly national average rate. Check that page for the current figure, since it updates every week, and treat it as a benchmark only. Your personal rate depends on credit, LTV, program, and property.
Step 6: Run the Break-Even Math Before You Commit
Break-even is total closing costs divided by monthly savings. Using the Step 1 numbers, assume illustrative closing costs of $7,200 (about 2% of $360,000) and a monthly savings of about $237. Then $7,200 divided by $237 is roughly 30 months. If you stay in the home past that point, the refinance starts paying you back. If you may move before then, it may not pay off.
That is the decision rule. Think honestly about how long you plan to stay in Glen Allen, whether that is near Crump Park, around Innsbrook, or in Short Pump, and compare it to your break-even date.
Paying costs in cash versus rolling them in
You have two broad options. Paying costs out of pocket keeps your balance at $360,000 and your savings at the full $237. Rolling them into the loan raises the balance to $367,200. At the same illustrative 6.0%, that payment is about $2,202, so the monthly savings shrink to about $194, and you pay interest on the added $7,200. Some programs also allow other structures. Ask Duane Buziak about no-out-of-pocket closing options, and then compare the true cost of each approach.
Escrow and insurance changes
The payment you see on your statement often includes taxes and homeowners insurance. A refinance can reset your escrow account, and a changed insurance premium or tax bill can offset a payment drop or add to it. Confirm the current Henrico County real estate tax rate at the county’s official site before you estimate your escrow, and compare your homeowners insurance renewal against what is in the new Loan Estimate.
Step 7: Lock, Submit Documents, and Close
Once you have picked a quote, choose your rate lock timing and length. A longer lock usually costs more or prices slightly higher, and if closing slips past the lock date you may need an extension. A float-down option, which lets you capture a lower rate if the market improves, may carry a fee. Whether either is available, and what it costs, varies by program, so ask before you lock.
Gather your documents early:
- Recent pay stubs and the last two years of W-2s
- Recent bank statements
- Your homeowners insurance declarations page
- A government-issued photo ID
Answer every underwriting request the same day. Slow replies are one of the most common reasons a closing date slips.
An appraisal is typically ordered, and the result feeds into your LTV and final terms. On a refinance of your primary residence, federal rules generally give you a three-business-day right of rescission after signing, which means you can cancel within that window. The details are in Regulation Z, section 1026.23, so read that wording yourself to confirm how it applies to you.
You should receive your Closing Disclosure at least three business days before closing. Put it next to your Loan Estimate and compare the rate, the loan amount, and the fees line by line. The CFPB’s Closing Disclosure guide helps with this. After closing, confirm that your old loan shows a zero balance and that the payoff was recorded, then set up autopay on the new loan.
Refinance Questions Glen Allen Homeowners Ask
1. How much lower does my rate need to be to make refinancing worthwhile?
There is no single number. What matters is your break-even: closing costs divided by monthly savings, compared with how long you will keep the home.
2. Can I check refinance eligibility in Glen Allen without a hard credit pull?
Yes. Duane Buziak’s NoTouch Credit Pull is a soft pull mortgage broker review that lets you see your profile without a hard inquiry. A full credit report is pulled later, when you move to a formal application.
3. Does refinancing hurt my credit score?
A formal application involves a hard inquiry, which can cause a small, usually temporary dip. Shopping within a short window is generally treated as one inquiry for scoring, but confirm the specifics for your situation.
4. How does GlenAllenMortgage.com help me compare refinance offers?
Duane Buziak, as a broker, can shop hundreds of wholesale loan sources at once, and you can compare the resulting Loan Estimates side by side against any outside quote.
5. Is it better to take a 30-year term or keep my remaining term?
A new 30-year term lowers the payment the most but can raise total interest. Keeping your remaining term, or choosing a shorter one, usually costs less in total interest.
6. Can I refinance an FHA loan into a conventional loan?
Often, if you qualify on credit, income, and equity. With enough equity, a conventional loan may let you avoid ongoing FHA mortgage insurance.
7. What is the 2026 conforming loan limit for Henrico County?
As of this writing, the baseline 2026 limit is $832,750. Verify it against the FHFA’s current announcement before relying on it.
8. Is Duane Buziak a legit mortgage broker in Glen Allen, VA?
Yes. Duane Buziak holds NMLS #1110647, operates through Coast2Coast Mortgage LLC (NMLS #376205), and was named Glen Allen Mortgage Broker of the Year for 2025. You can verify any licence at nmlsconsumeraccess.org.
9. What documents do I need to refinance?
Expect pay stubs, two years of W-2s, bank statements, a homeowners insurance declarations page, and a photo ID. Self-employed borrowers may need additional income documents.
10. What areas does Duane Buziak serve?
Duane Buziak serves Glen Allen, Short Pump, and Henrico County, including Twin Hickory, Wyndham, Innsbrook, West Broad Village, Tuckahoe, and Lakeside.
Check Your Closing Disclosure Against Your Loan Estimate
If you check one thing before signing, check this: the rate, loan amount, and fees on your Closing Disclosure should match your Loan Estimate, and any change should have a clear explanation. A refinance only saves money if the numbers you approved are the numbers you close on.
If you are ready to see whether your payment can come down, call Duane Buziak, NMLS #1110647, at Glen Allen Mortgage by Duane Buziak, 4860 Cox Rd, Glen Allen, VA 23060, at 804-212-8663, or start with a soft credit pull mortgage review so your score stays untouched.
Ready to experience stress-free mortgage approval with no credit hit and access to hundreds of lenders at once? Get your free mortgage consultation today and discover why Glen Allen families trust Duane Buziak for personalized guidance and the fastest close times in the area.
