How much equity do I need?

A rate-and-term refinance can work with as little as 3-5% equity. Dropping PMI takes about 20%, and a conventional cash-out requires you to keep 20% (an 80% loan-to-value cap).

Will refinancing hurt my credit?

The hard inquiry causes a small, temporary dip. Rate-shopping multiple lenders within a ~45-day window counts as a single inquiry for scoring.

Refinance Into a 15-Year Mortgage

Wondering about refinancing into a 15-year mortgage? Here is exactly how it works in 2026 — the rules lenders apply, the numbers, and your next move.

The short answer

Refinancing into a 15-year mortgage secures a lower rate than a 30-year and builds equity far faster, though the monthly payment rises substantially. It is best suited to homeowners with stable income who want to be debt-free sooner and pay less total interest. Confirm the higher payment fits your budget before committing.

What refinance lenders look for

Equity: ~3-5% for a rate-and-term, 20% to drop PMI, and 20% kept for a cash-out (80% LTV cap).
Credit: roughly 620+ for conventional; FHA and VA streamlines do not re-check your score.
Debt-to-income: generally under ~43-50% including the new payment.
Break-even: closing costs divided by monthly savings — refinance only if you will keep the home past it.

Refinance rates and guidelines change. Join the free Refi Rate Guide alerts to hear when the rules or rates that affect this situation move.

Your next steps

Pull your credit, estimate your home's value and current balance to gauge equity, and get quotes from two or three lenders the same day so the comparison is apples-to-apples. Then run the break-even before you commit.

Catch the Next Refinance Rate Drop

Refinance rates move daily and the right dip can save hundreds a month. We will tell you the moment it makes sense.

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Frequently Asked Questions

Refinance Into a 15-Year Mortgage — is it possible in 2026?: Refinancing into a 15-year mortgage secures a lower rate than a 30-year and builds equity far faster, though the monthly payment rises substantially. It is best suited to homeowners with stable income who want to be debt-free sooner and pay less total interest. Confirm the higher payment fits your budget before committing.
How much equity do I need?: A rate-and-term refinance can work with as little as 3-5% equity. Dropping PMI takes about 20%, and a conventional cash-out requires you to keep 20% (an 80% loan-to-value cap).
Will refinancing hurt my credit?: The hard inquiry causes a small, temporary dip. Rate-shopping multiple lenders within a ~45-day window counts as a single inquiry for scoring.