Rate Strategy · September 2026

Is It Time to Refinance?

Every time rates move, homeowners ask the same question: should I refinance? It is a good question, and the honest answer is that it depends. Here is how we think about it, so you can tell whether it is worth a closer look for you.

Our simple rule of thumb

We only suggest refinancing when we can lower your rate by at least half a percent. Below that, the savings usually will not outweigh the closing costs in a reasonable amount of time. We would rather tell you to wait than talk you into a refinance that does not actually help you.

It is not only about the rate

A refinance can do more than lower your payment. It may let you tap built-up equity for a project or debt consolidation, remove mortgage insurance once you have enough equity, or move from an adjustable rate to a fixed one for peace of mind. The right reason depends entirely on your goals.

Do the break-even math

The key number is your break-even point: divide your closing costs by your monthly savings to see how many months it takes to come out ahead. If you plan to keep the home well past that point, a refinance can make sense. If you might move sooner, it may not. We will run this math on your actual loan, not a generic example.

Let’s look together

If your current rate sits well above today’s, or one of the reasons above applies to you, it is worth a quick conversation. We will pull your numbers and tell you plainly whether it pencils out, with no pressure either way. Any rate or savings depends on your qualification and current market conditions.

Common questions

When is it worth it to refinance your mortgage?

Refinancing is generally worth considering when you can lower your rate by at least half a percent, enough for the monthly savings to outweigh the closing costs. It can also make sense to tap equity, remove mortgage insurance, or move from an adjustable rate to a fixed one.

How do I calculate my refinance break-even point?

Divide your total closing costs by your monthly savings. The result is the number of months it takes to come out ahead. If you plan to keep the home past that point, a refinance can pay off.

Can I refinance to remove PMI or take cash out?

Yes. Once you have enough equity, a refinance can remove mortgage insurance, and a cash-out refinance can turn built-up equity into funds for other goals. The right option depends on your numbers and your plans.