09/05/2026
People often ask whether they should refinance when rates move. The answer is usually: it depends. And the first thing I look at is not the monthly payment.
Here is why. Refinancing has upfront costs. Depending on the loan and the lender, those costs can add up to several thousand dollars or more. If you get a lower monthly payment but move or refinance again before enough time has passed to recover those costs, you may end up spending more than you saved.
There is a useful way to think about this called the break even point. It is simply the amount of time it takes for your monthly savings to add up to what you paid to refinance. If you plan to keep the loan longer than that, refinancing may work in your favor. If you expect to sell or refinance again before reaching that point, the math may not support it.
A refinance should serve a real financial goal, and that goal needs to account for cost, timing, and how long you plan to stay in the home.
If you have been wondering whether refinancing makes sense and what it would actually cost you, reach out and we can look at the numbers for your specific situation.
Kristin Graham
Loan Originator NMLS #260576
๐ 210.639.0984
