When should I refinance my mortgage? Plus, the best lenders to do it with.

Refinancing a mortgage can give homeowners a big break. It allows them to reset their rate, length of their loan, monthly payment and many other elements of their term sheet that can have substantial financial implications. As the rate environment cools off after hitting decade-high peaks in 2023 and 2024, more homeowners are rushing to secure better deals. The number of refinance applications was up 52% year-over-year during the week ending April 22, the latest data available, according to the Mortgage Bankers Association. But mortgage rates have been volatile this year as oil prices jump in response to the Iran war, adding to an already challenging housing market , and making it difficult to decide when to refinance. The answer has a lot to do with why a homebuyer wants to refinance. Below, we tackle three common scenarios and when to plan the strategy We want to hear your story Are you living paycheck to paycheck, or do you have a financial success you're comfortable sharing with a reporter? Please fill out this quick form . When to refinance if you want a lower rate In September 2023, 82% of recent homebuyers planned to “ buy now and refinance later ,” according to a US News and World Report survey conducted by PureSpectrum. A month later, the 30-year fixed-rate average hit 7.79% . It's taken years for rates to creep down. In fact, economists predicted rates would hover around 6% this year, giving optimism to those hoping to refinance in 2026. …