Start from what you want to change, then find the refinance that fits
When not to refinance
Straight answer
Skip or delay a refinance when you plan to move before the savings repay the closing costs, when a longer term would add more interest than the payment relief is worth, or when a cheaper route exists: requesting mortgage insurance removal, an assumption to remove a borrower, a recast after a lump-sum payment, or extra principal payments.
Last reviewed against the primary sources listed below.
Cheaper routes
| Goal | Possible route without refinancing |
|---|---|
| Drop mortgage insurance | Request cancellation from the servicer |
| Remove a borrower | Assumption with release |
| Lower payment after a lump sum | Ask about a recast |
| Pay off sooner | Extra principal payments |
People also wonder
How do I know if refinancing is not worth it?
If you would move or refinance again before monthly savings cover the closing costs, it likely does not pay.