Expert: Lindsay Ratterman
Company: Northpointe Bank
Phone: (502) 810-4133
Website: http://loanswithlindsayratterman.com/
Published on May 1st, 2026
| One of the questions mortgage brokers get all the time- “Should we refinance?” And my honest answer is almost always the same: it really depends on what’s going on in your life, not just the rates. Refinancing isn’t only about chasing a lower number on paper: Sometimes it’s about creating breathing room in your monthly budget. Sometimes, it’s about paying your house off faster. And sometimes, it’s about using the equity you’ve built to renovate, consolidate debt, or make life a little easier in this busy season. A lot of people still think you should only refinance if rates drop a full 1%: While that can be great, it’s not the whole story anymore. If a refinance can lower your monthly payment, remove mortgage insurance, shorten your loan term, or improve your overall cash flow, it might be worth a conversation—even if the rate change looks small. You might be a good candidate to explore refinancing if: 1.) Your credit score is better than when you bought 2.) Your home’s value has gone up and you’ve built equity 3.) You want to change loan types (like FHA to conventional) 4.) You’re trying to simplify finances or pay off high-interest debt 5.) You’re ready to pay your home off faster Another big piece of the puzzle is how long you plan to stay in your home. Refinancing has costs, so we always look at your break-even point—basically, how long it takes for your monthly savings to outweigh those costs. If you’re staying put beyond that, it can be a smart move. The truth? The right time to refinance is when it supports your family’s real-life goals—not just what the headlines say. Sometimes a quick check-in and a simple numbers review is all it takes to know if it’s a “yes,” a “not yet,” or a “not worth it.” |
