The Mortgage Minute
Is Now the Right Time to Refinance?
With interest rates constantly in the headlines, many homeowners are asking the same question: Should I refinance my mortgage right now? The answer depends on your personal goals and financial situation, but there are a few common reasons why it might make sense to consider a refinance in today’s market.
If current rates are lower than when you purchased your home, refinancing could help you lower your monthly mortgage payment—sometimes significantly. Even a small drop in your interest rate can lead to meaningful savings over time.
Beyond lowering your payment, refinancing may also be a smart way to access the equity you've built in your home. With rising home values in many markets, a cash-out refinance can provide funds for renovations, debt consolidation, or other large expenses.
Another reason to refinance is to shorten your loan term. Moving from a 30-year to a 15-year mortgage can help you pay off your home faster and save thousands in interest, even if it slightly increases your monthly payment.
Similarly, refinancing gives you the opportunity to switch loan types. For example, you might want to move from an FHA loan to a conventional loan to eliminate mortgage insurance, or switch from an adjustable-rate mortgage to a fixed-rate mortgage for long-term stability.
It’s important to note that refinancing does come with costs—typically between 2% and 6% of your loan amount—so the decision should always be weighed against how long you plan to stay in the home. If you’re planning to move in the near future, refinancing might not make sense. But if you’re staying put for a while, the long-term savings could outweigh the upfront expenses.
If you're curious whether refinancing is right for you, let's run the numbers together. I’ll help you review your current loan, explore your options, and make a clear, informed decision—no pressure, just honest guidance.
Reach out to one of our experienced mortgage professionals today to learn more!