Key Takeaways
- Refinancing may save you money, lower your term, or unlock equity—but timing is key.
- You should consider refinancing if rates have dropped, your credit has improved, or you want to eliminate PMI.
- High closing costs or a short remaining term might mean it’s better to wait.
- Lenders look at your credit, equity, and payment history before approving a refinance.
- The Molly Dean Mortgage Team helps you evaluate your options and decide when refinancing is the right move.
Should I Refinance Right Now?
Interest rates change. Life changes. And your mortgage? That might need to change too. If you’re wondering, “Should I refinance right now?” you’re not alone. Homeowners across Kansas and beyond are reevaluating their mortgage terms to see if they can save money, reduce financial stress, or tap into home equity.
This guide from the Molly Dean Mortgage Team breaks down when refinancingmakes sense—and when it might not. You’ll learn the current refinance landscape, what lenders look for, and how to run the numbers before making a move.
What Does It Mean to Refinance Your Mortgage?
Refinancing means replacing your current mortgage with a new one—ideally with better terms. You can refinance to:
- Lower your interest rate
- Reduce your monthly payment
- Change your loan term (e.g., from 30 to 15 years)
- Switch from an adjustable-rate mortgage to fixed
- Tap into your home’s equity with a cash-out refinance
- Remove private mortgage insurance (PMI)
It’s a financial reset button—but only when used at the right time.
Is Now a Good Time to Refinance?
The answer depends on your unique financial goals and the current interest rate environment. Here’s when refinancing right now might make sense:
- Rates have droppedbelow your current mortgage rate
- Your credit score has improvedsince you got your loan
- You want to cash out equityfor home improvements or debt consolidation
- You’re ready to shorten your loan termto pay off your home faster
- You want to remove PMIfrom an FHA or high-LTV loan
Rates change often. Our team monitors them daily and can help you time your refinance for maximum benefit.
How to Know If Refinancing Will Save You Money
Use this quick checklist to gauge if refinancing is worth it:
- Is your new interest rate at least 0.5–1% lower than your current rate?
- Will you stay in the home long enough to break even on closing costs?
- Will your monthly payment or total loan cost go down?
- Will you eliminate PMI or reduce the loan term?
Use our Refinance Calculatoror contact us for a custom savings analysis.
Reasons to Refinance Now
There are multiple scenarios where refinancing makes financial sense:
- Your current loan has a high ratecompared to market averages
- You’re still paying mortgage insurancethat can be removed
- You want more stable paymentsby switching from an ARM to a fixed-rate loan
- You need cashfor large expenses, such as college or renovations
- You want to consolidate high-interest debts
Even if you refinanced recently, a better offer might be available now depending on your equity and credit.
Reasons to Wait Before Refinancing
Refinancing isn’t right for everyone, and waiting may be wiser in some cases:
- Your credit score has recently dropped
- You haven’t owned the home long enoughto build equity
- You’re planning to move soon, making the cost of refinancing harder to recoup
- Current interest rates are higherthan your existing rate
- You already refinanced recently, and your break-even point hasn’t passed
We’ll help you crunch the numbers to make sure it’s not just possible—but also practical.
What Lenders Will Look at Before Approving Your Refinance
To determine if you qualify for refinancing, lenders typically review:
- Credit score(620+ for conventional loans; lower for FHA or VA)
- Debt-to-income ratio(preferably under 43%)
- Home equityand current loan-to-value (LTV) ratio
- Payment historyon your current mortgage
- Income and employment documentation
If you’re unsure whether you meet refinance guidelines, the Molly Dean Mortgage Team can help you evaluate your profile.
Understanding Refinance Costs
Like your original mortgage, refinancing comes with closing costs. These may include:
- Loan origination fee
- Appraisal fee
- Title and escrow costs
- Taxes and insurance escrows
- Credit report and underwriting fees
Most homeowners pay 2% to 6%of the loan amount in refinance costs. You can often roll these into the new mortgage, but it’s important to calculate your break-even point.
Tools to Help You Decide
Here’s how to get started evaluating your refinance options:
- Use our Refinance Calculatorto estimate monthly savings
- Check your current loan balance and interest rate
- Request a soft credit pull to understand your score
- Contact our team for a no-pressure refinance analysis
We’ll help you understand the math and explore loan options that make sense for your goals.
Work With the Molly Dean Mortgage Team to Time Your Refinance Right
If you’re asking, “Should I refinance right now?” we’ll help you answer with confidence. We’ve helped thousands of homeowners in Kansas and surrounding areas refinance at the right time—with clarity, savings, and peace of mind.
We’ll review your current loan, assess your eligibility, and guide you through next steps with transparency and care.
Ready to explore your refinance options?
Reach out to the Molly Dean Mortgage Team todayfor a personalized consultation.
Molly Dean
Molly Dean is consistently ranked as one of the top loan officers in the nation! Her knowledge of products and programs allows her the ability to help her borrowers find the program that best fits their individual needs.
Molly understands that when shopping for a mortgage professional, you need an individual and a team you can rely on. Molly’s goal is to help you in a fast and friendly manner.
Molly Dean and her team have a combined experience of 50+ years. Molly and her team work endlessly to make the purchase of a home as smooth as possible from start to finish. Molly and her team specialize in Conventional, FHA, VA, USDA, 203K, and Reverse loans.
