Mortgage interest rates are falling: If market rates drop ½% to 5/8% below your current interest rate, it could be a good scenario for you to refinance your home. In a market where interest rates are falling, two potential benefits exist that could help lower the overall loan amount. The first option lets homeowners shorten the terms of their repayment while still making the same or comparable payment amounts. The other option allows homeowners to lower their monthly payments while keeping the same or comparable repayment term. Either way, homeowners find themselves with a way to save money on their mortgage investment.
You are early in your mortgage term: Homeowners who are in the earlier years of their mortgage term tend to find more advantages from refinancing. Refinancing at this point, when payments are mostly being directly towards interest, tends to benefit homeowners more than later in the life of the mortgage when payments are going more towards the principal than the interest.

Consider It All
Make sure that if you do decide to refinance, it is not an impulsive reaction to one, singular factor like suddenly falling rates. To make the best decision for you and your financial situation, you’ll want to consider all the contributing factors such as how long you plan to stay in the home and how going through the process would help you achieve your long-term financial goals.