Patricia Do Rosario · September 2, 2026

When does refinancing actually pay off?

Mortgage Market Update

My Mortgage Company

Patricia Do Rosario

Wednesday, September 2, 2026

When does refinancing actually pay off?

Hi there, This week I'm breaking down one of the most common questions I hear: when is refinancing the right move?

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

VA 30-Year

6.38%

Rate trend

Source: Freddie Mac PMMS & Optimal Blue via FRED

Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.


Refinancing 101

When refinancing makes sense (and when it doesn't)

Refinancing sounds like a one-size-fits-all solution, but the truth is it only works if the math works for you. The main reasons people refinance are to lower their monthly payment, shorten their loan term, or tap into home equity. But each one requires different conditions—like where rates are, how long you plan to stay, and what you'll actually do with the freed-up cash. I've seen borrowers save thousands over time, and I've also seen deals that sounded good on paper but didn't pencil out after closing costs. The key is running the real numbers for your specific situation, not just chasing a lower rate. If you're wondering whether refinancing is worth a closer look, I'd be happy to walk through the details with you.

Reach out if you'd like to explore whether refinancing could work in your favor.

Tip of the Week

Your mortgage interest may be tax-deductible if you itemize. Check with your tax professional to see if it benefits you.

Tips for Homeowners

Understanding Mortgage Points

1.

One mortgage point equals 1% of your loan amount. Paying points ("buying down the rate") reduces your interest rate — typically 0.25% per point, though this varies by lender and market.

2.

Calculate your break-even: divide the cost of the points by your monthly savings. If it takes 4 years to break even and you plan to stay 10 years, buying points makes sense.

3.

Points paid on a home purchase are generally tax-deductible in the year paid (if you itemize). Points on a refinance must be deducted over the life of the loan.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the My Mortgage Company team any time and we'll walk you through your options.

Your Mortgage Advisor

M

My Mortgage Company

Patricia Do Rosario

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