When does it make sense to refinance your mortgage?

You may be able to secure a lower interest rate — but it's not a good move for everyone

Application for mortgage refinance loan sitting on a table along with a calculator, keyboard, pen, and pair of glasses
Mortgage rates recently fell to their lowest since February 2023, which may soon set off a wave of refinancing
(Image credit: jayk7 / Getty Images)

After a period of mortgage rates being persistently high, they are finally starting to fall. In the week of Aug. 8, 2024, mortgage rates fell "to their lowest since February 2023," said NerdWallet. And there's a good chance that "rapid decrease is likely to set off a wave of refinancing."

Refinancing your mortgage can allow you to secure a lower rate — particularly if you took out your loan when rates were higher than they currently are. But is it a good idea for you?

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Becca Stanek, The Week US

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.