Thinking of Refinancing? Here Are 3 Scenarios Where It Actually Makes Sense.

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This is a common question, and the right answer depends entirely on your individual goals. Generally, a mortgage refinance is worth serious consideration in a few key situations. First, when current market rates are significantly lower than your existing rate, allowing you to reduce your monthly payment and long-term interest costs—our refinance calculator can help you see the potential savings. Second, if you want to switch from an adjustable-rate mortgage (ARM) to the stability of a fixed-rate conventional loan. Third, to eliminate FHA mortgage insurance by refinancing into a conventional loan after building sufficient equity, or to tap into home equity for a major expense via a cash-out refinance. The best step is to run the numbers for your specific situation, which is where consulting with a knowledgeable mortgage broker can provide clarity on the break-even point and whether a FHA streamline refinance or other program is your most efficient path.