Insider Discussion – When Does It Make Sense To Refinance?
Insider Discussion – When Does It Make Sense To Refinance?
Refinancing? Here’s when it actually makes sense!
If your rate is 1% higher than today’s rates, refinancing can save you thousands. But watch out for fees! Want a mortgage calculator? DM ‘REFI’!
I hope this information was helpful! If you are considering buying or selling a home, I would love to talk to you. I am a seasoned agent with over 24 years of experience in the local real estate market. I would love to be able to get you the financial result you desire from your current home to get you in to that Dream Home! Don’t hesitate to call me anytime at 260-579-1516 or you can email me at mike@mikearchbold.com.
Refinancing? Here’s When It Actually Makes Sense
With interest rates constantly changing, it’s no surprise that homeowners are wondering if now is a good time to refinance. Refinancing can be a powerful financial tool—but only when the timing and math are right.
So, how do you know if refinancing your mortgage makes sense?
Let’s break it down.
🔍 What Is Refinancing?
Refinancing simply means replacing your current mortgage with a new one—often with a lower interest rate or different loan terms.
The primary goals of refinancing are usually:
- Reducing your monthly payment
- Lowering your total interest costs
- Shortening your loan term
- Switching from an adjustable-rate to a fixed-rate mortgage
- Tapping into home equity with a cash-out refinance
But refinancing isn’t free—and it’s not always the best move.
💸 When Does Refinancing Make Sense?
Here’s the rule of thumb:
If your current mortgage rate is at least 1% higher than today’s rates, refinancing may be worth exploring.
Even a seemingly small 1% drop can save you thousands over the life of the loan. For example:
On a $250,000 loan:
Dropping your rate from 6.5% to 5.5% could save over $40,000 in interest over 30 years.
Of course, savings vary depending on your loan amount, term, and how long you plan to stay in your home.
⚠️ What to Watch Out For
While the promise of a lower rate is tempting, refinancing comes with upfront costs:
- Closing costs (usually 2%–5% of the loan amount)
- Appraisal fees
- Title and escrow fees
- Loan origination fees
These costs can add up quickly and wipe out the benefit of a lower interest rate if you’re not careful. That’s why it’s essential to calculate your break-even point—the point at which your monthly savings cover the cost of refinancing.
👉 Ask Yourself:
- How long do I plan to stay in the home?
- What’s the total cost of refinancing?
- How much will I save monthly and over time?
If you’re planning to move in just a year or two, refinancing probably won’t make sense. But if you’ll be staying for the long haul, it might be a smart financial move.
📊 Want Help Running the Numbers?
Don’t try to do this alone—refinancing decisions are too important to guess at.
If you’re curious whether refinancing is right for you, I’ve got a simple tool to help.
📲 DM me the word “REFI” and I’ll send you a free mortgage calculator you can use to see if the numbers work in your favor. No pressure, no obligation—just clarity.
🏡 Final Thoughts
Refinancing can be a game-changer—when done for the right reasons, at the right time. Make sure the savings outweigh the costs, and don’t be afraid to ask for help.
If you’re unsure about current rates, lender fees, or your refinancing options, reach out anytime. I’m here to help guide you through every step.
Why Does RE/MAX Results Stand Out Among the Competition?
Simply put: Relationships. We pride ourselves not only in our professional service but more importantly in the personal touch we bring to our business. Has an agent/lawyer/contractor/vendor ever treated you like you were just another paycheck? The reason our clients come back time and again and refer all their friends and family to us is because they know we are part of the family.
Genuinely caring about the people we serve enables us to do things other agencies can’t. Rest assured, we will ALWAYS have your best interest at heart and work vigorously to get you the best deal possible on your home or business. The relationships we build with our clients enable us to work 100% by referral.
The reason we are able to give top notch service to our clients is because our clients refer us a constant stream of quality family and friends to assist in their real estate needs. While other agents are out making cold calls and chasing “potential” leads, we are freed up by our referral base to service our clients like no other broker can. We are never too busy for your referrals!
Want to experience the difference for yourself? Call or text me today at 260-579-1516.
“Professional Service with a Personal Touch“
We’re Here To Help
Are you or someone you know considering a home purchase? Don’t hesitate to call or text me, Michael Archbold, at 260-579-1516 and I will connect you with the best mortgage professionals in the business who can get you your score, discuss ways to improve it if necessary, and put you on the path to home ownership. Click here to read more about our Buyer Services. Click here to browse listings NOW! Looking to sell your home? Call today to set up an appointment to begin developing your customized marketing plan. Click here to read more about our Seller Services.
Hoosier Home Listings by RE/MAX Results is a full service real estate Web site serving Northeast Indiana. We assist residential and commercial clients in locating, buying, and selling real property in the State of Indiana including but not limited to the counties of Allen, Huntington, Wells, Adams, Whitley, Wabash, Kosciusko, Noble, Dekalb, Lagrange, Steuben and cities including Fort Wayne, Decatur, Bluffton, Huntington, Warsaw, Columbia City, Butler, and Angola. RE/MAX Results is an Equal Housing Opportunity company.
Hoosier Home Listings – Insider Discussion – Understanding the Risks of Capital Gains…
… brought to you by Michael Archbold, Hoosier Home Listings, and RE/MAX Results.
The consummate professional, Michael Archbold (Associate Broker, REALTOR, ePro) brings a diversified background to the world of real estate. Born and raised in Fort Wayne, Mike graduated Wayne High School in 1992. He received bachelors degrees in Accounting in 1997 from Indiana University and Information Technology in 2005 from Indiana Wesleyan University. Mike comes to Re/MAX with more than 20 years of experience in sales and accounting. He began his career in real estate in 2000 as an investor.
