Duane Buziak is a mortgage broker based in Glen Allen who helps Henrico County families buy and refinance homes, and he has done so since 2014. The question he hears most often is how refinancing rates compare to purchase rates. The honest answer is that the gap depends on your loan type, occupancy, credit, and equity, so a headline number rarely applies to you. Seven methods follow, from Short Pump to Tuckahoe, and none of them requires a hard credit pull.
Written by Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205
1. Start With Why Refinance and Purchase Rates Differ
A gap between the two only means something if you know what creates it. Pricing starts from a base rate, then adds or subtracts adjustments for risk. On conventional loans, many of these are loan-level price adjustments (LLPAs), published by Fannie Mae in a matrix that varies by credit score, loan-to-value (LTV), and loan purpose. Cash-out refinances carry higher adjustments than purchases or rate-and-term refinances because the borrower is pulling equity out. Occupancy matters too: second homes and investment properties price higher than primary residences.
For example, imagine two borrowers, both with a 740 score and 80% LTV. One is buying a primary residence in Short Pump. The other is doing a cash-out refinance on a home in Tuckahoe. Same score, same LTV, yet the cash-out borrower will usually see a worse price because of the extra adjustment. This is an illustration, not a quote. A rate-and-term refinance for the same borrower might price much closer to the purchase.
To put this into practice:
- Learn the terms: par rate (the rate with no points or credits), LLPA, rate-and-term versus cash-out, and APR.
- Read the Fannie Mae LLPA matrix to see how score and LTV bands change pricing.
- Ask for a quote that itemizes the adjustments rather than showing only a final rate.
The common mistake is treating a national average as a Henrico quote. The weekly Freddie Mac Primary Mortgage Market Survey is a useful market gauge, but it describes a hypothetical borrower, not you. You will know this step worked when you can name the adjustments affecting your own quote.
2. Match the Loan Type Before You Compare Numbers
Conventional, FHA, and VA loans price on different grids, so a comparison across programs tells you about the programs, not about refinancing versus buying. Compare conventional to conventional, FHA to FHA, VA to VA, and keep the term identical.
Suppose a Wyndham-area homeowner wants to know whether refinancing would cost more than buying a similar home. The fair test is a 30-year conventional refinance against a 30-year conventional purchase at the same price tier, both on a primary residence. Anything else mixes variables, and you cannot tell which one moved the rate.
Before requesting any quotes, write down these fields for each scenario:
- Program (conventional, FHA, or VA).
- Term (30-year fixed, 20-year, 15-year).
- Occupancy (primary, second home, investment).
- Estimated LTV and loan amount.
- Purpose (purchase, rate-and-term, or cash-out).
The most frequent error is comparing a 30-year fixed to a 5/6 ARM or a 15-year. Shorter terms and adjustable products carry lower starting rates for reasons unrelated to refinance versus purchase. Loan limits also shape which program applies. In 2026 the conforming ceiling is $1,249,125 in high-cost areas, with a baseline limit of $832,750 elsewhere; check the FHFA conforming loan limit page to confirm how Henrico is classified before assuming a loan is conforming or jumbo.
Your check is simple: both quotes share identical program, term, and occupancy fields.
3. Adjust for Occupancy, Credit Score, and Loan-to-Value
These three levers move refinance and purchase pricing by different amounts, and LTV is the one people most often get wrong. A purchase borrower chooses a down payment. A refinance borrower inherits an LTV from the home’s value and the payoff balance.
Take a Lakeside homeowner whose home is worth about $500,000. With a $300,000 payoff, LTV is 60%. With a $425,000 payoff, LTV is 85%. Same score, same house, but the two will land in different pricing bands, and the 85% case may also need mortgage insurance. Neither number tells you much about a purchase quote at 80% LTV.
Limits are worth knowing. Conventional cash-out refinances top out at 90% LTV. VA cash-out refinances can reach 100% LTV for eligible veterans, which the VA cash-out refinance page explains. Segment A readers with jumbo balances should expect tighter LTV and reserve requirements at higher loan amounts.
To work this out:
- Estimate your value from the county assessment or a recent appraisal.
- Pull your current payoff from your servicer, not your original loan amount.
- Divide payoff (plus any cash out) by value to get your true LTV.
- Request quotes at that LTV and your actual score tier.
The classic mistake is comparing a 20%-down purchase quote to a 90% LTV refinance. The measurement is that every quote you hold was run at your true LTV and score tier.
4. Run a Credit-Safe Side-by-Side Quote
Rates move daily, sometimes within the day. Two quotes gathered a week apart, or with different assumptions, show you market movement as much as any real refinance-versus-purchase difference. Pricing both scenarios on the same day, from one profile, removes that noise.
You also should not damage your score to do it. The CFPB’s guidance on shopping for a mortgage encourages comparing multiple offers, and credit scoring models generally treat mortgage inquiries within a short window as one, but a soft-pull pre-qualification avoids the question entirely. Duane Buziak’s NoTouch Credit Pull process prices a scenario without a hard inquiry.
For example, imagine a Henrico family deciding between a move-up purchase and refinancing in place. They give Duane Buziak one financial profile and ask for two scenarios: the purchase at their target price, and a rate-and-term refinance on their current home. Both come back the same day, built from the same income, assets, and score.
The sequence:
- Provide a single profile with income, assets, estimated value, and payoff.
- Request two clearly defined scenarios.
- Get note rate, APR, lender credits or points, and estimated cash to close in writing for each.
The pitfall is collecting quotes on different days or with different assumptions, such as one with points and one without. Success means two written quotes dated the same day with identical borrower inputs.
5. Compare Total Cost, Not Just the Rate
The lowest rate is not always the lowest cost. Closing costs, points, and the length of time you hold the loan decide which option wins. Break-even math makes this concrete.
The rate difference in dollars
As an illustration, take a $450,000 loan on a 30-year fixed term. At 6.50%, principal and interest is about $2,844 per month. At 6.75%, it is about $2,919. That quarter-point gap is roughly $74 per month, or about $26,800 over 360 payments. These rates are examples only, not current quotes.
The break-even test
Now suppose a refinance costs $6,000 in closing costs and saves $150 per month. Divide $6,000 by $150 and you get 40 months. If you plan to stay in the home longer than a little over three years, the refinance pays for itself. If you may move in two years, it does not.
To run your own numbers:
- Use an amortization calculator for each option.
- Add every cost: origination, title, appraisal, prepaid items you would not otherwise pay.
- Divide total costs by monthly savings to find break-even months.
- Compare total interest, not just payment.
The overlooked trap is the term reset. Refinancing a loan with 22 years left into a new 30-year term can lower your payment while raising total interest paid. Measure break-even months against how long you realistically plan to stay in the home, and ask about no-out-of-pocket closing options if cash to close is the constraint.
6. Use Broker Shelf-Shopping to Narrow the Gap
Different wholesale shelves price the same loan differently. A broker can run one scenario across several of them, which can shrink the premium on a refinance or improve purchase pricing. A single-shelf provider can show you only its own price.
Consider a Short Pump or Innsbrook borrower with a high-balance loan. Priced across two or three shelves, the same file may show different rates and different credits. One shelf may be aggressive on loans above the conforming limit, another on cash-out refinances. You will not know which until the scenario is run on each.
Here is how the structure compares:
| Feature | Duane Buziak/Coast2Coast | Other single-shelf providers (unnamed) | Why It Matters |
|---|---|---|---|
| Pricing access | One scenario priced across multiple wholesale shelves | One shelf, one price sheet | Shelves differ by loan type, balance, and purpose, so the spread can be real money |
| Credit inquiry | Soft-pull pre-qualification with NoTouch Credit Pull | Often a hard pull to produce a quote | Shopping should not cost you points on your score |
| Local proximity | Glen Allen office serving Short Pump, Innsbrook, and Tuckahoe | May be remote or out of area | Local knowledge of county assessments and neighborhoods helps with valuation and timing |
| Scenario comparison | Purchase and refinance priced side by side | Usually one scenario per request | Same-day, same-input quotes make comparisons honest |
To use this: ask Duane Buziak to show results from multiple shelves for your scenario. If you already hold an outside written quote, bring it to the Dare to Compare challenge, where it is matched against like-for-like terms.
The mistake is assuming all shelves price identically. Measure the spread between the highest and lowest comparable quotes, in both rate and credits.
7. Time Your Comparison to the Right Triggers
A comparison goes stale quickly. Rather than checking constantly, tie it to events that change your numbers.
For example, imagine a Glen Allen owner who bought a few years ago with less than 20% down and is paying mortgage insurance. She checks the property’s value on the Henrico County assessor’s page and sees the assessed value has climbed. Her estimated LTV may now be low enough to drop PMI or qualify for better pricing, so she asks for a fresh quote. An assessment is only a starting estimate, and an appraisal decides the final figure.
Set up a routine:
- Put a quarterly reminder on your calendar to review your payoff and county value.
- Re-run a quote when market rates move roughly half a point from your current rate.
- Re-run it when your equity, credit score, or income changes materially.
- Confirm rate lock length against your expected closing date before you commit.
The common mistake is refinancing because a rate looks lower, without checking break-even or lock timing. A lock that expires before closing can erase the savings. Measure each new quote against the previous one: break-even months and total savings, not the rate alone. Rate levels change weekly, so any figure should carry an “as of” date.
Eight Questions Henrico Borrowers Ask About Refinance and Purchase Rates
Who is a mortgage broker in Henrico VA?
Duane Buziak is a mortgage broker with an office at 4860 Cox Rd in Glen Allen, helping families find their new homes since 2014.
Are refinance rates always higher than purchase rates?
No. A rate-and-term refinance on a primary residence can price close to a purchase, while cash-out refinances and investment properties usually carry higher adjustments.
Why is a cash-out refinance priced higher?
Cash-out loans carry more risk to the investor, so conventional pricing adds LLPAs, and conventional cash-out is capped at 90% LTV.
Can a VA borrower in Henrico take cash out?
Yes, eligible veterans can refinance with cash out up to 100% LTV, subject to program rules and underwriting.
Does comparing quotes hurt my credit?
Not with a soft-pull pre-qualification; Duane Buziak’s NoTouch Credit Pull lets you price scenarios without a hard inquiry.
What is the difference between rate and APR?
The note rate sets your monthly interest, while APR folds in certain fees to show a broader cost of borrowing.
How do I know if refinancing is worth it?
Divide your total closing costs by your monthly savings; if the result in months is shorter than the time you plan to stay, it generally pays off.
Does a Short Pump or Innsbrook home change my options?
Often, because higher prices can push a loan above the conforming limit into jumbo territory, where pricing and shelf selection differ.
Where to Begin When You Want a Straight Answer on Your Own Rate
Start with items 2 and 4. Match the loan type, term, and occupancy, then run a same-day, credit-safe side-by-side so both quotes rest on the same facts. Once those are in hand, bring in items 5 and 6: work the break-even math on real closing costs, and ask for the scenario to be priced across multiple shelves to see how wide the spread runs. The first two steps produce a trustworthy comparison, and the next two tell you which option actually costs less.
Your dream home in Henrico County is closer than you think. Discover exactly what you can afford with our credit-safe pre-qualification process that protects your score while unlocking your options. Get pre-qualified today and take the first step toward homeownership with a local mortgage expert who understands your community. You can also call Henrico Mortgage by Duane Buziak at 804-212-8663.