Refinancing a mortgage in Richmond, VA pays off only when the numbers say so, and the numbers are easy to check before you commit to anything. This guide walks Short Pump and Henrico homeowners through the full process to refinance a mortgage in Richmond VA, from deciding on a goal to closing day. It starts with a soft pull pre-approval through Duane Buziak’s NoTouch Credit Pull, so you can see real options without a credit hit.
Before you start, gather your current mortgage statement, recent pay stubs or income records, two months of bank statements, and a rough idea of your home’s value.
Written by Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205
Step 1: Define Your Refinance Goal and Check Your Equity
Pick one primary goal, because it decides which program fits. The four common goals:
- Lower rate or payment (rate-and-term): you change the interest rate, the term, or both, without taking cash out.
- Shorter term: moving from 30 years to 20 or 15 to cut total interest, usually with a higher payment.
- Cash-out: a larger new loan that pays off the old one and hands you the difference.
- Dropping FHA mortgage insurance: moving from FHA to conventional once you have enough equity.
Next, estimate your equity. Subtract your payoff balance from your home’s value. Then divide the balance by the value to get your loan-to-value ratio (LTV). A $400,000 balance on a $550,000 home is an LTV of about 73 percent, or $150,000 in equity.
Many Short Pump owners hold more equity than they assume. Henrico County median sale prices have been running roughly $520,000 to $527,000 as of 2026, and you can check current figures in the Redfin Data Center. If you bought a few years ago, your value has likely moved.
One mistake to avoid: treating a Zillow-style online estimate as your real value. It is a starting point. The appraisal decides the number the loan is built on, so plan with a cushion.
Keep the cash-out rules straight too. VA cash-out refinancing allows up to 100% LTV, and that applies to VA loans only. Conventional cash-out is capped lower, so do not carry the VA figure over to other programs. You can read the VA’s own description on its cash-out refinance loan page.
Step 2: Get a Soft Pull Pre-Approval Before You Shop
Duane Buziak uses a NoTouch Credit Pull so homeowners can see real refinance options with no hard inquiry. That makes it a soft credit pull mortgage process: you get a no hard inquiry mortgage pre approval and a working quote before your score is touched. It is a mortgage pre approval without hard pull, and as a soft pull mortgage broker, Duane Buziak can run it as a no credit hit mortgage application step at the very start.
Why it matters: if you call several retail lenders and each one runs a hard pull, the inquiries stack up on your report. Scoring models generally treat mortgage inquiries made within a short shopping window as a single inquiry, but the length of that window depends on the scoring model, and not every lender pulls the same way. Do not assume you are covered. The CFPB explains how credit inquiries and mortgage shopping work in its Owning a Home resources, and it is worth reading before you apply anywhere.
Starting with a soft pull sidesteps the question. You compare options first, and a hard pull happens later, once, when you choose to move forward.
To get the pre-approval going, Duane needs:
- A government-issued photo ID
- Your current mortgage statement
- Income documents (pay stubs, or tax returns if self-employed)
- Your homeowners insurance declarations page
Expect a quote back with program options and estimated costs, not just a rate headline.
Step 3: Choose Your Refinance Program (FHA, VA, USDA, Conventional, Non-QM)
Match the program to the goal from Step 1. An FHA borrower who wants a lower payment looks at an FHA streamline. A VA borrower can use an IRRRL (Interest Rate Reduction Refinance Loan, the VA’s streamline) or a VA cash-out. Duane’s lender access reaches borrowers down to a 500 FICO on VA loans, subject to approval. Conventional is the usual route for removing mortgage insurance. Self-employed owners and investors often look to bank statement, DSCR, or other Non-QM options.
The VA describes the streamline on its IRRRL page. A streamline generally means reduced documentation and sometimes no appraisal, though lender requirements vary.
| Program | Best for | Credit floor | Max LTV / cash-out | Mortgage insurance / funding fee | Soft pull availability |
|---|---|---|---|---|---|
| FHA streamline | Existing FHA borrowers lowering payment | Varies by lender overlays | Rate-and-term only; often no appraisal | Upfront and annual MIP apply | Yes, via NoTouch Credit Pull |
| VA IRRRL | Existing VA borrowers lowering rate | Down to 500 FICO through Duane’s lender access | Rate-and-term; no cash-out | 0.5% funding fee unless exempt | Yes, via NoTouch Credit Pull |
| VA cash-out | Eligible veterans tapping equity | Down to 500 FICO through Duane’s lender access | Up to 100% LTV | Funding fee unless exempt | Yes, via NoTouch Credit Pull |
| USDA streamlined | Existing USDA loans on eligible properties | Varies | Rate-and-term; property must stay eligible | Annual fee applies | Yes, via NoTouch Credit Pull |
| Conventional | Dropping FHA insurance; rate-and-term | Commonly 620+ | Cash-out commonly capped near 80% LTV | PMI if LTV is above 80% | Yes, via NoTouch Credit Pull |
| Bank statement / DSCR / Non-QM | Self-employed owners and investors | Varies by product | Varies by product | Typically priced into the rate | Yes, via NoTouch Credit Pull |
Figures are general guides as of October 2026 and change by lender and borrower. Duane confirms exact terms on your quote.
On loan size: the FHFA publishes the conforming loan limits each year, and the 2026 high-cost ceiling is $1,249,125. Henrico falls under the baseline limit, not the high-cost ceiling. Loans above the limit that applies to your county are jumbo. See the FHFA’s conforming loan limit values page for the exact county figures. Physician loans are not offered, and reverse mortgages are referral only.
Step 4: Run the Break-Even Math with a Worked Example
This example is illustrative, not a current rate quote. Suppose you owe $400,000 on a 30-year loan at 7.00%. Principal and interest is about $2,661 a month. Refinance the same balance into a 30-year loan at 6.00% and it drops to about $2,398. That is roughly $263 a month in savings.
Now the break-even point: total closing costs divided by monthly savings. If costs are $6,000, then $6,000 / $263 is about 23 months. Stay in the home longer than that and the refinance pays for itself. Plan to sell in 18 months and it does not.
The resetting-term trap
Say you are six years into a 30-year loan. Refinancing into a new 30-year term restarts the clock, and a lower payment can still cost you more interest over time. On that $400,000 at 6.00%, a 30-year term carries about $463,000 in total interest. A 25-year term (payment about $2,577) carries about $373,000. A 20-year term (payment about $2,866) carries about $288,000. The 25-year option still lowers your payment by about $84 a month versus the old $2,661 and shortens your payoff. The 20-year costs about $204 more each month but saves far more interest.
No-out-of-pocket closing options
If you do not want to pay $6,000 at the table, Duane can structure no-out-of-pocket closing options. The costs are either rolled into the loan balance or covered by a slightly higher rate through lender credits. The trade-off is plain: rolling $6,000 into the loan makes the balance $406,000, and the 6.00% payment rises to about $2,434. Taking a higher rate instead means paying more interest every month. Rerun the break-even with the new payment before you decide.
Step 5: Compare Broker Quotes Against Single-Shelf Retail Lenders
The difference here is structural. Duane Buziak, NMLS #1110647, is an independent broker with access to 500+ wholesale lenders, so he can price your file across many sources and pick the one that fits. Retail lenders quote only their own products, which is fine when their product happens to fit and limiting when it does not. Duane says he has never lost a rate war on an FHA refinance, and the way to test that is to put competing quotes side by side.
Compare the Loan Estimates line by line. The Loan Estimate is the standardized three-page form every lender must give you after you apply. Look at these items:
- Interest rate and points: a lower rate may come with discount points that raise your cost.
- Section A, origination charges: the lender’s own fees for making the loan.
- Section B, services you cannot shop for: third-party fees like the appraisal and credit report.
- Lender credits: money that offsets costs, usually in exchange for a higher rate.
A tip that keeps the comparison fair: ask every provider for quotes at the same rate lock length and the same number of points. A quote with a 15-day lock and one with a 60-day lock are not the same product, and a lower rate bought with more points is not a better deal. The lowest rate does not always mean the lowest cost, so compare the total.
Step 6: Lock Your Rate, Submit Documents, and Prepare for the Appraisal
Locking holds your rate for a set period, commonly 30 to 60 days. Longer locks can cost more. Ask whether a float-down option is offered, which lets you take a lower rate if the market improves. No one can predict where rates go, so decide based on whether today’s payment meets your break-even, not on a guess.
Have these documents ready:
- Two years of income records (W-2s or tax returns)
- Recent pay stubs
- Two months of bank statements
- Current homeowners insurance declarations page
- Your Henrico County property tax information, which affects your escrow. County rates and billing details are on the Henrico County Finance Department site.
For the appraisal, write down upgrades you have made since you bought, such as a finished basement, new roof, kitchen update, or flooring, with approximate dates and costs. Clear access to the house, garage, and attic. Look up recent sales of similar homes near Short Pump Town Center or West Broad Village so you know what the appraiser is likely to see.
If the appraisal comes in low, you have options:
- Reduce the loan amount or skip the cash-out portion.
- Switch to a program that needs a lower LTV or no appraisal.
- Ask for a reconsideration of value, supported by comparable sales.
Until closing, avoid opening new credit, financing a car, or moving large unexplained sums between accounts. Any of these can force a re-review of your file.
Step 7: Review the Closing Disclosure and Close
The Closing Disclosure is the final five-page statement of your loan terms and costs. Federal rules require that you receive it at least three business days before closing, as laid out in Regulation Z, section 1026.19 on the CFPB’s site. Compare it to your Loan Estimate: the rate, loan amount, and cash to close should match, and any fee increase should be explained.
On most primary-residence refinances you also have a three business day right of rescission after signing. Funds are not disbursed until that period ends. Exceptions exist, including some refinances with your current lender and certain investment properties, so confirm how it applies to your loan. The rule is in Regulation Z, section 1026.23.
After signing, handle these items:
- Cancel autopay on the old loan so it does not draft a payment.
- Confirm the old loan shows paid in full, and keep the payoff letter.
- Note your first new payment date, which is usually about 30 to 60 days after closing.
- Watch for your escrow refund from the old servicer, typically mailed within a few weeks.
If anything on the disclosure looks off, call Duane Buziak at (804) 212-8663 before you sign.
After Closing: First Payment, Escrow Refund, and a Date to Revisit
Confirm that your first payment date is on the calendar and that your old escrow refund arrives. If it has not shown up in a few weeks, contact the old servicer. Then set a reminder to reassess in a few years, since a change in your rate, equity, or plans can reopen the question.
Ready to find the right mortgage solution for your Short Pump area home? Connect with our local mortgage experts today for personalized guidance and access to multiple lenders who compete for your best rate. Or call Duane Buziak at Short Pump Mortgage by Duane Buziak, (804) 212-8663, for a soft pull refinance quote.