Should I refinance my mortgage?
A refinance can make sense when the monthly savings recover your closing costs well before you expect to sell or refinance again — but you also have to look at what restarting the loan term does to total interest.
Refinancing · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
Start with break-even: divide the cash you spend on closing costs and points by the monthly payment savings. If break-even is 30 months and you plan to stay eight years, the math has room to work.
Then compare total interest, not just the payment. Replacing 24 years of remaining payments with a fresh 30-year term lowers the payment partly by stretching the loan out, which can raise lifetime interest even at a lower rate.
Other reasons to refinance include removing mortgage insurance, moving out of an adjustable rate, shortening the term or taking cash out. Each changes the math, so model your own numbers.
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