How to know when it's time to refinance your home.

published october 2025

There’s more to it than interest rates.

If you’re a homeowner, chances are you’ve wondered about refinancing your mortgage, especially if you’re locked in at a higher rate.

A lot of homeowners think refinancing only makes sense when rates drop. And yes, that can save you money, but it’s not the only reason.

The right time to refinance isn’t the same for everyone. It usually comes down to whether your current loan still fits your life.

Here are times when refinancing might be worth exploring:

Life changes.

Divorce, retirement, inheritance, or adding/removing a borrower—life happens, and sometimes your loan needs to change with it. Refinancing can reset your terms so your home loan fits your current situation.

When equity works in your favor.

Built up enough equity? Refinancing may let you drop private mortgage insurance (PMI), which means instant monthly savings.

Or, if you have multiple loans (like a first mortgage and a home equity loan), you could refinance to roll them into one payment.

You want to put your home’s value to work.

A cash-out refinance lets you tap into your home’s equity for things like renovations, education expenses, or even debt consolidation. You could combine your high-interest balances into one lower-rate payment and save.

Think of it as using your home to reinvest in your life.

You’re looking for a stable rate.

If you have an adjustable-rate mortgage (ARM), refinancing into a fixed-rate loan can protect you from rising rates.

When rates drop or payments feel tight.

If interest rates have gone down, or if switching to a longer loan term could help your budget, refinancing might lower your monthly payments.

So, should you refinance?

It comes down to timing and fit. If your mortgage feels too expensive, too unpredictable, or just doesn’t match your life anymore, refinancing could be worth exploring.

To take the guesswork out, our loan officers are here to help. They have the tools and knowledge to make sure you’re making the best decision for your situation.

Refinancing isn’t about chasing the lowest rate. It’s about making sure your mortgage matches your goals, your budget, and your future. If one of these timing signals applies to you, it may be the right time to start the conversation.