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Should I refinance right now?

Use your current loan, the new offer, closing costs, and your likely time horizon.

All borrower guides

Short answer

There is no market-wide yes or no. A refinance may make sense when it improves a specific goal and you expect to keep the new loan long enough for the benefit to outweigh the costs and tradeoffs.

Compare these

  • Current balance, rate, remaining term, payment, and any mortgage insurance.
  • Proposed rate, APR, term, points or credits, fees, payment, and cash to close.
  • How long you expect to keep the property and the new loan.

Watch for

  • Acting on a headline rate that does not match your scenario.
  • Treating a smaller payment as savings without checking the new term and balance.
  • Paying points when your likely break-even horizon is short or uncertain.

A useful next step

Request a current written scenario and compare short-, medium-, and long-horizon costs before moving forward.

Check the source

This guide provides general educational information. It is not a personalized loan recommendation, approval, rate quote, or commitment to lend.

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