Chris McGahan · September 2, 2026

Should you refinance? Here's how to tell.

Mortgage Market Update

My Mortgage Company

Chris McGahan

Wednesday, September 2, 2026

Should you refinance? Here's how to tell.

Hi there. This week I want to tackle a question I hear often: when does refinancing actually make financial sense?

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 Basics

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

Refinancing isn't always the right move, even when rates drop. The real question is whether the savings over time outweigh the costs of refinancing—things like appraisal fees, title work, and processing. I always tell clients to run the math first. If you're planning to sell or move in a few years, refinancing might not pencil out. But if you're staying put and rates have moved meaningfully in your favor, it could free up real monthly cash flow or help you pay off your loan faster.

The best approach is honest: look at your current loan terms, your timeline, and what the new terms would be. I'm here to walk you through those numbers so you can decide with confidence.

Give me a call or send a message if you'd like to explore whether refinancing could work for your situation.

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

Chris McGahan

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