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Should I refinance my mortgage?

Quick answer

Refinance if you can lower your rate by at least 0.75-1.0 percentage points and you'll stay in the home long enough to recoup the closing costs (typically 2-4 years). If your rate is already below 5%, refinancing rarely makes sense in the current environment.

More context

Refinance if you can lower your rate by at least 0.75-1.0 percentage points and you'll stay in the home long enough to recoup the closing costs (typically 2-4 years). If your rate is already below 5%, refinancing rarely makes sense in the current environment. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

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