# Mortgage Refinance in Tennessee: Rate and Term, Cash-Out and Debt Consolidation Canonical URL: https://valor.mortgage/refinance/ Page title: Mortgage Refinance in Tennessee | Valor Mortgage Which refinance fits what you want, when it's worth the closing costs, VA IRRRL and FHA streamline rules, and how a free review with Christopher works. [Get Started](https://valor.mortgage/purchase/) [Today's Rates](https://valor.mortgage/todays-rates/) By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) Last updated October 27, 2026 Checked against Fannie Mae, Freddie Mac, HUD and VA rules · October 2026 Quick answer A mortgage refinance replaces your current home loan with a new one. Tennessee homeowners usually refinance in one of three ways: a rate and term refinance to change the rate or term, a cash-out refinance to borrow against equity, or a debt consolidation refinance to pay off other debts. It’s worth doing when what you gain over the time you keep the loan is more than the closing costs, which commonly run about 3%–6% of the loan. Rules on this page were verified against Fannie Mae, Freddie Mac, HUD and VA sources on October 27, 2026. Program terms and eligibility are subject to Fannie Mae, Freddie Mac, FHA, VA and lender guidelines and may change. At a glance: refinancing in Tennessee - **Rate and term:** new rate or term, no cash out - **Cash-out:** up to 80% of value on conventional and FHA, up to 100% on VA - **Debt consolidation:** a cash-out refinance that pays off other debts at closing - **Streamlines:** VA IRRRL and FHA streamline for existing VA and FHA loans - **Worth it when:** the savings recover the costs before you sell or refinance again - **How we work:** a free review first, and no credit pull until you decide to go ahead ## Which kind of refinance fits what you want? | If you want to… | Refinance type | Key limits | |---|---|---| | Lower your rate, shorten your term, switch an ARM to fixed, or drop mortgage insurance | [Rate and term refinance](https://valor.mortgage/rate-term/) | The new loan pays off what you owe plus costs; no cash out | | Borrow against your equity for a renovation, tuition or a co-owner buyout | [Cash-out refinance](https://valor.mortgage/cash-out/) | 80% of value on conventional and FHA; up to 100% on VA (many lenders cap at 90%); no USDA cash-out | | Pay off credit cards, personal loans or other debts | [Debt consolidation refinance](https://valor.mortgage/debt-consolidation/) | A cash-out refinance with the debts paid at closing; the same limits apply | | Lower the rate on a current VA or FHA loan with less paperwork | [VA IRRRL](https://valor.mortgage/va-irrrl/) or FHA streamline | Existing VA or FHA loan; seasoning and net-benefit rules | Sources: [Fannie Mae Selling Guide B2-1.3-03](https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-refinance-transactions); [HUD Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1); [38 CFR 36.4306](https://www.law.cornell.edu/cfr/text/38/36.4306), checked October 27, 2026. Lenders can set lower limits. Program terms and eligibility are subject to agency and lender guidelines and may change. If you already have a low rate and only need a smaller amount of cash, refinancing the whole mortgage often doesn’t add up. A HELOC or home equity loan from a bank or credit union keeps your first mortgage in place. Valor doesn’t offer HELOCs, but I’ll tell you when one fits better. See [what a HELOC is](https://valor.mortgage/what-is-a-home-equity-line-of-credit-heloc/). ## When is refinancing worth it? Start with the break-even point: **total closing costs ÷ monthly savings = months to break even**. If you expect to keep the loan longer than that, the refinance pays for itself. If you might sell or refinance again sooner, it likely won’t. - **Usually worth a look:** rates have dropped enough that the savings recover your costs within the time you’ll keep the loan; you want a shorter term; you have an ARM that is about to adjust; you have FHA mortgage insurance and now have enough equity for a conventional loan; or you need a larger sum and restructuring high-interest debt would help your cash flow. - **Usually not:** your current rate is low and you need a small amount, you plan to move soon, or the lower payment comes only from stretching the term back to 30 years. A lower payment isn’t the same as saving money. Restarting a 30-year term or rolling in debt can lower the monthly payment while raising the total you pay. I compare the total cost over the years you expect to keep the loan, not just the payment. More detail: [What is a mortgage refinance, and when does it make sense?](https://valor.mortgage/what-is-a-mortgage-refinance/) ## What does it cost to refinance? Refinance closing costs commonly run about 3%–6% of the loan amount, [according to Freddie Mac](https://myhome.freddiemac.com/refinancing/costs-of-refinancing): lender fees, appraisal, title insurance, recording and prepaid escrow. Most of them can be included in the new loan instead of paid in cash. Government loans add their own fees: | Loan | Agency fee on a refinance | |---|---| | VA IRRRL | 0.5% funding fee, unless exempt | | VA cash-out | 2.15% first use, 3.3% after first use, unless exempt | | FHA | Upfront mortgage insurance of 1.75% plus an annual premium; part of the upfront premium may be refunded on an FHA-to-FHA refinance within three years | | Conventional | No agency fee; private mortgage insurance applies above 80% of value | Sources: [VA, Funding fee and closing costs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/); [HUD Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1), checked October 27, 2026. Veterans receiving VA disability compensation are exempt from the funding fee. Program terms are subject to agency and lender guidelines and may change. ## What are VA IRRRL and FHA streamline refinances? Both lower the rate on an existing government loan with less paperwork than a full refinance: - **[VA IRRRL (Interest Rate Reduction Refinance Loan)](https://valor.mortgage/va-irrrl/):** refinances a current VA loan into a new VA loan. The loan must be at least 210 days past the first payment with six payments made, and it must pass VA’s net tangible benefit test; when both loans are fixed-rate, the new rate must be at least 0.5% lower, and the costs must be recouped within 36 months. The funding fee is 0.5%. See [VA loans](https://valor.mortgage/va-loans/). - **FHA streamline:** refinances a current FHA loan into a new FHA loan, often without an appraisal. HUD requires 210 days since closing, six payments made, and a net tangible benefit such as a lower combined rate and mortgage insurance. See [FHA loans](https://valor.mortgage/fha-loans/). Sources: [38 CFR 36.4306](https://www.law.cornell.edu/cfr/text/38/36.4306); [VA, IRRRL](https://www.va.gov/housing-assistance/home-loans/loan-types/interest-rate-reduction-loan/); [HUD Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1), checked October 27, 2026. Program terms and eligibility are subject to agency and lender guidelines and may change. ## Which options are open on a $350,000 home in Robertson County? Say your home appraises at $350,000 and you owe $250,000 on a conventional loan with private mortgage insurance. You have about 29% equity (a 71% loan-to-value ratio): | Option | What the numbers allow | |---|---| | Rate and term | A new loan of about $250,000 plus costs, under 80% of value, so no mortgage insurance on the new loan | | Cash-out (conventional or FHA, 80%) | A new loan up to $280,000, or about $30,000 before closing costs | | Debt consolidation | The same $280,000 maximum, with the debts paid directly at closing | | Without refinancing | Ask your servicer to cancel PMI: you can request it at 80% of the original value | Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs and prepaids are not shown. Program terms and eligibility are subject to agency and lender guidelines and may change. To try your own numbers, including the property tax for a specific Tennessee address, use the [Tennessee mortgage calculator](https://valor.mortgage/mortgage-calculator/). ## How does refinancing with Valor Mortgage work? 1. **Free refinance review.** I look at your current balance, rate, remaining term and estimated equity. No cost, no obligation, and no credit pull at this stage. 2. **Compare your options.** As a broker, I price your refinance with several wholesale lenders, not just one bank, and lay out the options side by side: the costs, the break-even point and the total cost over the time you plan to keep the loan. If refinancing doesn’t make sense, I’ll tell you. 3. **Apply and close.** Once you choose, we pull credit, order the appraisal if one is needed, and work through underwriting. Closing is handled by phone and online from anywhere in Tennessee, with the title company you choose. On a primary-home refinance you then have a [three-business-day right to cancel](https://www.consumerfinance.gov/rules-policy/regulations/1026/23/) before the loan funds. How long it takes depends mostly on the appraisal, title work and how quickly documents come in. Underwriting and appraisal times are not guaranteed. ## Refinance FAQ ### What are the types of mortgage refinance? Rate and term (a new rate or term, no cash out), cash-out (a larger loan that pays you the difference), and debt consolidation (a cash-out refinance that pays off other debts at closing). Existing VA and FHA loans also have streamline options: the VA IRRRL and FHA streamline. Program terms are subject to agency and lender guidelines and may change. ### How do you know if refinancing is worth it? Divide the total closing costs by the monthly savings to get the months to break even. If you expect to keep the loan longer than that, it can pay off. Also compare the total cost over that time, since restarting a 30-year term can raise what you pay overall. ### How much does it cost to refinance? Freddie Mac puts typical refinance closing costs at about 3%–6% of the loan amount. VA loans add a funding fee (0.5% on an IRRRL) unless you’re exempt, and FHA loans add upfront mortgage insurance. Most costs can be included in the new loan. Program terms are subject to agency and lender guidelines and may change. ### Will checking my refinance options hurt my credit? Not at the first step. My refinance review uses your current loan details and doesn’t pull credit. Credit is pulled only when you decide to apply, and credit-scoring models generally treat several mortgage inquiries within a short shopping window as one, per the CFPB. ### How soon can you refinance after buying? A rate and term refinance can often happen soon after purchase, depending on the lender. Cash-out has waiting periods: six months on title and a 12-month-old first mortgage for conventional, 12 months for FHA. VA IRRRL and FHA streamline need 210 days and six payments. Program terms are subject to agency and lender guidelines and may change. ### Should I refinance or get a HELOC? If your current rate is near today’s rates or you need a large amount, a cash-out refinance may fit. If your rate is low and you need less, a HELOC from a bank or credit union keeps that rate in place. Valor doesn’t offer HELOCs, but I’ll compare both with you. ## Where these figures come from | Figure | Source | As of | |---|---|---| | Conventional cash-out limits and waiting periods | [Fannie Mae Selling Guide B2-1.3-03](https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-refinance-transactions) and Eligibility Matrix | Checked Oct 27, 2026 | | FHA cash-out, streamline and mortgage insurance | [HUD Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1) | Current handbook | | VA 100% limit, IRRRL seasoning and net tangible benefit | [38 CFR 36.4306](https://www.law.cornell.edu/cfr/text/38/36.4306) | Checked Oct 27, 2026 | | VA funding fees | [VA, Funding fee and closing costs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Checked Oct 27, 2026 | | Refinance costs 3%–6% | [Freddie Mac, Costs of refinancing](https://myhome.freddiemac.com/refinancing/costs-of-refinancing) | Retrieved Oct 26, 2026 | | Right to cancel | [Regulation Z §1026.23](https://www.consumerfinance.gov/rules-policy/regulations/1026/23/) | Retrieved Oct 26, 2026 | | Rate-shopping inquiries | [CFPB](https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/) | Current page | ## Related guides - [Rate and term refinance](https://valor.mortgage/rate-term/), [cash-out refinance](https://valor.mortgage/cash-out/) and [debt consolidation](https://valor.mortgage/debt-consolidation/). - [What is a mortgage refinance, and when does it make sense?](https://valor.mortgage/what-is-a-mortgage-refinance/) - [15-year vs. 30-year mortgage](https://valor.mortgage/15-year-mortgage-vs-30-year-mortgage/). - [VA](https://valor.mortgage/va-loans/), [FHA](https://valor.mortgage/fha-loans/) and [conventional](https://valor.mortgage/conventional-loans/) loan pages. - Living in or moving to the Nashville area? Start with my [Nashville mortgage broker](https://valor.mortgage/nashville-mortgage-broker/) page. - [About Christopher Armantrout](https://valor.mortgage/about-us/), the licensed originator who wrote this page. [Call me at (615) 671-9178](tel:+16156719178). I’ll review your current loan, show you which refinance options fit, and tell you plainly if refinancing doesn’t make sense right now. If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/), or [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan. About the author [Christopher Armantrout](https://valor.mortgage/about-us/) Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804 Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee. [More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) **Valor Mortgage, LLC** · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity 724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · [NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify. --- ## Contact Valor Mortgage - Christopher Armantrout, Senior Loan Officer, NMLS #1210804 - Phone: [(615) 671-9178](tel:+16156719178) - Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage) - Office: 724 S Main St, Springfield, TN 37172 - [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/home-application/) · [Contact page](https://valor.mortgage/contact-us/) Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity. All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.