Refinancing makes sense in several scenarios. The most common reason is to secure a lower interest rate, which reduces your monthly payment and total interest paid. A general rule of thumb is that refinancing becomes worthwhile when you can reduce your rate by at least 0.5 to 0.75 percent, though the actual break-even point depends on your closing costs and how long you plan to stay in the home. Other good reasons to refinance include switching from an adjustable-rate mortgage to a fixed-rate for payment stability, shortening your loan term from a 30-year to a 15-year to pay off your home faster, eliminating private mortgage insurance once you have sufficient equity, or accessing your home equity through a cash-out refinance for home improvements, debt consolidation, or other financial needs. The key factor is your break-even period, which is how many months of savings it takes to recoup your closing costs. At NMHL, we calculate your exact break-even point and total savings so you can make a data-driven refinancing decision.