Mortgage rates, home values, and financial goals all change over time. If you’re a homeowner, you may be wondering if now is the right time to refinance your mortgage. Refinancing can save you money, shorten your loan term, or help you access equity but it’s not always the best move for everyone. Let’s break down the main factors to consider.
What Does It Mean to Refinance?
When you refinance, you replace your existing mortgage with a new one — ideally with better terms. Homeowners typically refinance to secure a lower interest rate, reduce monthly payments, switch from an adjustable-rate to a fixed-rate loan, or cash out equity for major expenses.
When Refinancing Makes Sense
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Lower Interest Rates: If today’s rates are significantly lower than when you bought your home, refinancing can reduce your monthly payments and long-term interest costs.
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Shortening Your Term: Moving from a 30-year loan to a 15-year loan can help you pay off your home faster and save thousands in interest.
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Cash-Out Refinance: Access your home equity to fund home improvements, pay down debt, or cover large expenses.
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Remove Mortgage Insurance: If your home has gained value and you now have 20% equity, refinancing may allow you to drop private mortgage insurance (PMI).
When Refinancing Might Not Be Right
Refinancing isn’t free — you’ll typically pay closing costs, which can range from 2–5% of the loan amount. If you’re planning to sell your home in the near future or don’t plan to stay long enough to break even, refinancing may not make sense.
Local Perspective: Roseville and Sacramento Homeowners
In markets like Roseville, Rocklin, and greater Sacramento, rising home values over the past few years have created strong equity positions for many homeowners. This means refinancing could open the door to lower monthly payments or tapping into equity for home upgrades.
How to Know if Now Is the Right Time
The best way to determine if refinancing is right for you is to review your financial goals, current mortgage, and available loan options with a trusted lender. At The JJ Mack Team, we’ll run the numbers for you, compare loan scenarios, and help you decide whether refinancing benefits your situation.
Ready to explore refinancing? Contact us or fill out the form below to see if now is the right time to refinance your mortgage and save money.