The only question that matters
How long will it take for the savings to pay back the cost, and will you still own the home then? Everything else is noise. A refinance that costs $6,000 and saves $250 a month pays back in two years, which is usually a clear yes.
Reasons beyond the rate
Removing mortgage insurance once you have built equity. Moving from an adjustable rate to a fixed one before an adjustment. Shortening from 30 to 15 years to cut lifetime interest. Consolidating high-interest debt into a lower secured rate. Accessing equity for renovations or a down payment on a second property.
The trap to avoid
Restarting a 30-year clock every few years lowers your payment while quietly extending how long you carry the debt and how much interest you pay overall. If you have 22 years left, compare against a 20-year term, not another 30.
Questions people ask
How much equity do I need to refinance?+
Typically 20% for the best conventional pricing, though streamlined FHA and VA options exist with less, and mortgage insurance can bridge the gap.
How long does a refinance take?+
Usually three to five weeks, and there is a three-day right of rescission on an owner-occupied refinance before funding.