"Should I refinance?" doesn't have a calendar answer. The right time is whenever the math clears your break-even with room to spare — or when a refinance solves a problem beyond rate. Here's how to know.
Good reasons to refinance
- Rates have dropped enough that you clear your break-even comfortably
- You're dropping mortgage insurance — e.g., refinancing out of FHA once you have equity
- You want to change the loan — shorten the term, move from ARM to fixed, or tap equity
- Your credit or income has improved, unlocking better terms
Reasons to wait
- You'll likely sell before hitting your break-even
- The savings mostly come from re-stretching the loan to 30 years
- Your current rate is already very low — don't give it up without a strong reason
The honest test is always the break-even: total cost ÷ monthly savings. Clear it well before you'd move or refinance again, and the timing is right — whatever the headlines say.
Not sure if now's the time?
Send me your current loan and I'll run the real numbers. If it's not worth it yet, I'll tell you to wait — and I'll keep an eye out for when it is.
This article is general education, not a commitment to lend or an offer of credit. Program availability, terms, rates, and qualification guidelines vary by lender and are subject to change; all loans are subject to underwriting and final approval. Market figures are approximate and change over time. For guidance specific to your situation, reach out directly. Garrett Potz, NMLS #631592 · Affinity Home Lending, Company NMLS #1181151 · Equal Housing Lender.