Extension Logo
Extension Logo
University of Minnesota Extension
extension.umn.edu

When should you refinance your home loan?

When should you refinance your home loan? Most lenders say refinancing makes sense when:

  • The current interest rate is at least two percentage points below your existing mortgage loan interest rate.
  • Refinancing costs are affordable.

If those two conditions exist, you should look into refinancing. Then it will offer potential benefits, depending on your situation. But there are tradeoffs, too, so you'll need to consider a number of factors before deciding whether refinancing is right for you.

 | 

For more information, see the Consumer Financial Protection Bureau's webpage on Buying a house: Tools and resources for homebuyers.

Shirley Anderson-Porisch, Extension educator emeritus in family resiliency

Reviewed by Dung Mao, Extension educator

Reviewed in 2023

Page survey

© 2024 Regents of the University of Minnesota. All rights reserved. The University of Minnesota is an equal opportunity educator and employer.