Can I refinance a bank statement loan?

Yes — fresh statements for 12–24 months, new appraisal, same documentation as the original purchase.

Can I go from Non-QM to conventional at refinance?

Yes — if Schedule C income qualifies at the time of the refi.

Can closing costs be rolled into the new loan?

Yes — if equity and LTV limits allow, or via lender credits at a slightly higher rate.

Does refinancing restart the amortization clock?

Yes — a 30-year refi restarts the 30-year schedule unless you choose a shorter term.

← Refinance

Lower your mortgage payment — including a Non-QM loan

Q: How do I calculate break-even?

Closing costs ÷ monthly payment savings = months to break even.

Lowering your mortgage payment through refinancing is possible whether you have a conventional, bank statement, or DSCR loan. The income documentation for the refinance uses the same program as your current loan — no W-2 required for Non-QM files.

By Sunrise Lending

The break-even calculation

Before committing to a refinance, run the break-even: closing costs ÷ monthly payment savings = months to break even. If you plan to stay for longer than that, the refinance saves money. If you're likely to sell or refinance again sooner, it may not pencil.

What you need to know

Bank statement refi: same 12–24 month deposit documentation as the original loan
DSCR refi: same rental income ÷ PITIA calculation — no personal income required
Conventional refi: two years of tax returns; qualifies on agency add-back income
Rate-and-term refi: lowers your rate without cash out
Closing costs can often be rolled into the new loan or offset with lender credits
No prepayment penalty on most Non-QM refinance programs

Rate-and-term vs. cash-out refinance

A rate-and-term refinance replaces your existing loan with a new one at a lower rate, shorter term, or both — without pulling additional cash from the home's equity. This is the most straightforward path to a lower monthly payment.

A cash-out refinance pulls equity as a lump sum at closing. It may produce a lower rate than your current loan, but the higher loan balance means the monthly payment savings are smaller (or non-existent) compared to a rate-and-term refi. Cash-out refinancing is usually chosen for the capital access, not the payment reduction.

When does a rate-and-term refi make sense?

If rates have dropped since you took your original loan, a rate-and-term refi can produce meaningful monthly savings. The break-even period — closing costs divided by monthly savings — is the key metric. Well-organized files typically close in 30–45 days, and closing costs can often be structured as lender credits that eliminate out-of-pocket cost in exchange for a slightly higher rate.

Refinancing a Non-QM loan

Refinancing a bank statement or DSCR loan follows the same income documentation process as the original purchase. You'll need fresh bank statements (most recent 12–24 months), a current appraisal, and updated reserve documentation. For DSCR loans, a current lease or market rent appraisal replaces the income documentation.

Sunrise refinances bank statement and DSCR loans from any originating lender — not just our own. If you closed a Non-QM loan at a higher rate two years ago, the refinance process is straightforward.

Common questions

Can I refinance a bank statement loan to a lower rate?: Yes. A bank statement refinance uses the same income documentation as the original loan — fresh bank statements from the most recent 12 or 24 months. If rates have dropped since you closed, a rate-and-term refi can lower your monthly payment without requiring tax returns.
Can I refinance from Non-QM to conventional?: Yes — if your income qualifies on tax-return documentation at the time of the refinance. If your business has matured and your Schedule C income now meets conventional DTI requirements, a conventional refinance would produce the lowest available rate.
How do I calculate whether a refinance saves money?: Break-even = closing costs ÷ monthly payment savings. If closing costs are $8,000 and monthly savings are $300, break-even is 27 months. If you plan to keep the loan for more than 27 months, the refi saves money over its life.
Can closing costs be rolled into the new loan?: Yes — if the property has sufficient equity and the new loan amount remains within program LTV limits. Alternatively, lender credits offset closing costs in exchange for a slightly higher rate. The officer models both options.
Does refinancing restart the clock on my mortgage term?: Yes — a 30-year refinance restarts the 30-year amortization. If you're 7 years into your existing mortgage, refinancing extends the total payoff timeline unless you choose a shorter term (15 or 20 years) or make larger-than-required principal payments.

Ready to see your options?

The 60-second check-in matches you to the right program. A licensed Sunrise loan officer reviews before anything formal moves.

Find my refi path

Related resources

Sources

1.Consumer Financial Protection Bureau (CFPB). Mortgage Refinancing Information — Accessed June 2026
2.Federal Reserve Bank of St. Louis (FRED). 30-Year Fixed Rate Mortgage Average — Accessed June 2026
3.Consumer Financial Protection Bureau (CFPB). Know Before You Owe: Closing Costs — Accessed June 2026

Refinance program eligibility, closing costs, and break-even periods vary by lender and market conditions. Not a commitment to lend.

Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.