Refinancing replaces your current mortgage with a new one. It makes sense when the new loan moves you toward a specific goal — and when the savings outweigh the costs.
Common reasons to refinance
Homeowners refinance to change their interest rate or monthly payment, switch from an adjustable-rate to a fixed-rate loan, shorten or extend their term, access home equity with a cash-out refinance, or remove a co-borrower.
When is it worth it?
A useful lens is the break-even point: divide the closing costs of the new loan by your monthly savings to see how many months it takes to recoup the cost. If you expect to keep the home well past that point, the refinance may be worth exploring.
When might it not make sense?
If you plan to move soon, if the costs outweigh the benefit, or if extending your term would increase your total interest paid, refinancing may not fit your goals.
How to decide
Refinancing involves closing costs and may not lower your total costs — results depend on your situation and market conditions. Matthew can review your current loan and walk through the numbers with you.
General educational information only. Not financial advice or a commitment to lend.