You may want to consider refinancing if your goal is to reduce your interest rate for a lower monthly payment. Some of the benefits of lowering your mortgage rate is you can use the excess money to add to your savings, pay off the loan quicker, pay more towards other debts, put money aside for college or university tuition, or something else.
Chances are you can save money if your interest rate is 1% above today's current rates. Some loan programs have a cost, and some don't.
You might benefit from paying points if you will own your home for a long time. To find out if paying points will be right for you, running the numbers will provide some insight. Use our refinance calculators or discuss it with one of our licensed mortgage originator.
An advisor will let you know about the break-even period to recoup the costs and show you other options like what your payment will be with an adjustable rate mortgage as opposed to a 30-year fixed.
You may want to consider paying points to lower your rate if: