5 Signs It Might Be Time to Refinance Your Mortgage

A lot of people set up their mortgage and then forget about it — but refinancing at the right time can save you money, lower your monthly payments, or help you access your home’s equity.

Here are five signs it might be worth looking into a refinance.

1. Your Interest Rate Is Higher Than What’s Available Today

If rates have dropped since you first locked in your mortgage, refinancing could lower your monthly payment and the total interest you’ll pay over the life of the loan.

Even a small drop in your interest rate can make a noticeable difference.

[If you want to check current rates, click here]

2. You’re Carrying High-Interest Debt

If you have credit cards, personal loans, or other high-interest debts, using your home equity to consolidate them could save you a lot.

For example:

A $350,000 mortgage at 5.25% has a payment of about $2,086/month.
If you also have $20,000 in credit card debt, the minimum payment (interest only) would be around $149/month — which means you're just treading water.
To actually pay that $20,000 off in 5 years, you'd need to pay about $484/month.

If you roll that $20,000 into your mortgage at the same 5.25%:

Your new total monthly payment would be about $2,204/month, freeing up $366/month.
That’s a lot more manageable, and you’re paying it off at a much lower interest rate.

Consolidating debt into your mortgage can simplify your payments and save you hundreds of dollars each month.

3. You Need Money for Renovations or Investments

Home equity can be a powerful tool if you’re planning major renovations or thinking about buying an investment property.

Instead of taking out a personal loan or running up your line of credit, refinancing gives you access to lower-interest funds secured by your home.

4. You Want to Access Your Home Equity for a Big Purchase

If you've built up equity in your home, refinancing can be a smart way to access that money at a lower interest rate compared to other types of borrowing.

A few common reasons people refinance to access equity:

Funding a major home renovation
Helping a family member, like gifting money for a child’s down payment
Paying for education or starting a business

Instead of using higher-interest options like unsecured loans, refinancing lets you put your home’s equity to work.

5. Your Financial Situation Has Changed

If your income has gone up, your credit score has improved, or your goals have changed (like wanting to pay your mortgage off faster), refinancing can help you restructure your mortgage to better fit your life.

Final Thoughts

Refinancing isn’t right for everyone, but in the right situation, it can save you money, free up cash flow, or help you reach your financial goals faster.

[If you’re wondering whether refinancing makes sense for you, click here to start a quick review.]

Frequently Asked Questions (FAQ)

Does refinancing always save money?
Not always. It depends on your current mortgage, any penalties for breaking it, and what you want to accomplish. A quick review can help you decide.

Can I refinance to consolidate debt?
Yes. Many people refinance to roll higher-interest debts into their mortgage at a lower rate.

Can I refinance if my credit isn’t perfect?
Yes, depending on your situation. There are flexible options even if your credit isn’t perfect.