After a year of stubborn interest rates, homeowners are starting to ask an important question again: “Should I refinance my mortgage now?” The answer depends on your financial goals, your current rate, and how long you plan to stay in your home. Here’s what to consider before making your decision.

1. Mortgage Rates Are Drifting Lower, But Still Changing

As of fall 2025, average 30-year fixed mortgage rates have slipped back to the mid-6% range, after peaking above 7% last year.
That drop can translate to hundreds of dollars in monthly savings for some borrowers, but the market remains unpredictable, and rates could fluctuate as the Federal Reserve signals potential rate cuts later this year.

Tip: Don’t try to time the market perfectly. Instead, evaluate whether today’s rate provides a meaningful benefit compared to what you’re paying now.

2. How to Know if Refinancing Makes Sense

You might be a good candidate if:

1. Your current mortgage rate is at least 1% higher than today’s average.
2. You plan to stay in your home long enough to offset closing costs.
3. Your credit score or debt-to-income ratio has improved since your last mortgage.
4. You want to switch from an adjustable-rate to a fixed-rate loan for stability.
5. You’d like to shorten your term (e.g., from 30 years to 15) to save on interest.

Use a refinance calculator to estimate your break-even point (the time it takes for your monthly savings to outweigh upfront costs).

3. Be Aware of Closing Costs

Refinancing typically costs 2–5% of your loan amount in fees, including appraisal, title, and origination costs.
If you plan to move within a few years, your savings may not fully outweigh these expenses. However, if you expect to stay put longer-term, a refinance can provide meaningful monthly relief.

4. Consider a Cash-Out Refinance for Flexibility

If you’ve built up equity, you can refinance for more than you owe and receive the difference in cash.
Homeowners often use this for:

1. Renovations or repairs
2. Debt consolidation
3. Tuition or medical expenses 

Just remember: your new mortgage balance will be higher, so weigh short-term needs against long-term interest costs.

5. Work with a Lender Who Can Customize Your Options

The best refinance strategy depends on your specific goals: lowering payments, shortening your loan term, or accessing cash.
An experienced mortgage professional can help you:

1. Compare rate and term options
2. Evaluate closing cost trade-offs
3. Lock in a rate when the timing makes sense

Bottom Line

Refinancing isn’t right for everyone, but with rates easing and home equity at record levels, many homeowners stand to benefit.
Review your mortgage details, run the numbers, and talk with your lender to decide if now is the right time.

Explore your refinancing options with Queensborough today.
Our mortgage team can help you compare rates, calculate savings, and determine your break-even point, so you can make a confident financial decision.
Contact your lender or visit your local branch to get started.