Is it Time to Refinance Your Mortgage?

Rohit Padmanabhan |

Interest rate expectations have come down with the expectation of rate cuts later this year. That has led to a decrease in mortgage rates from ~8% to the mid 6s. That's a big drop, relatively, and clients are asking whether they should consider a mortgage refinacne (or at what point a "refi" might make sense).


Refinancing decisions generally come down to a "breakeven point" (in months) between the upfront cost of the loan refinance and the monthly savings the refi would create. If you have a high confidence that you'll be living in the house for longer than the breakeven point, then it certainly can make sense. But you also want to consider future interest rate expectations to determine if acting (or waiting) is in your best interest.