What's Happening
5 minutes ago

Is the Bubble About to Burst for Palantir Technologies Stock?

foolfool.com
7 minutes ago

1 Small-Cap Stock Down 34% to Buy on the Dip

foolfool.com
9 minutes ago

Here's Warren Buffett's Timeless Advice About Surviving a Stock Market Crash

foolfool.com
10 minutes ago

Don't Let This Dividend Stock's High Yield Fool You. It Has the Fuel to Deliver High-Octane Growth Through 2030.

foolfool.com
11 minutes ago

Better Cryptocurrency to Invest $10,000 In Right Now: Bitcoin or XRP (Ripple)?

foolfool.com
12 minutes ago

Marriott's Digital Penetration Hits 'Historic Highs' As Bonvoy App Downloads Soar Adding 31 Million New Members

benzingabenzinga.com
13 minutes ago

Dow Gains Over 100 Points Following Powell Comments: Fear & Greed Index Remains In 'Neutral' Zone

benzingabenzinga.com
22 minutes ago

Best Stock to Buy Right Now: Amazon vs Apple

foolfool.com
24 minutes ago

The Best Stocks to Invest $1,000 in Right Now

foolfool.com
29 minutes ago

AMD Management Is Buying Millions of Shares of AMD Stock. Should Investors Buy AMD Stock, Too?

foolfool.com
31 minutes ago

DeepSeek Is Here: How Amazon Is Using It to Grow Its Artificial Intelligence (AI) Program

foolfool.com
36 minutes ago

Why Walgreens' Dividend Suspension Shouldn't Come as a Surprise to Investors

foolfool.com
37 minutes ago

Google I/O 2025 Officially Set For May — Here's What To Expect, From AI Breakthroughs To The Future Of Android And Pixel 9a

benzingabenzinga.com
40 minutes ago

The Best Warren Buffett Stocks to Buy With $1,000 Right Now

foolfool.com
44 minutes ago

Mark Zuckerberg's Meta Eyes Acquisition Of Korean AI Chip Startup Founded By Former Samsung And AMD Engineer

benzingabenzinga.com
44 minutes ago

Mark Zuckerberg Just Made 3 Startling AI Predictions. Should You Buy Meta Stock Before They Come True?

foolfool.com
45 minutes ago

Here's the Smartest Way to Invest in the S&P 500 in February

foolfool.com
49 minutes ago

Is Boeing Stock a Buy Now?

foolfool.com
57 minutes ago

Prediction: Nvidia Stock Is Going to Surge After Feb. 26

foolfool.com
58 minutes ago

Larry Summers And Peter Schiff Warn Of Rising Inflation Risks As Markets Slash Fed Rate Cut Expectations: 'Most Sensitive Moment'

benzingabenzinga.com

3 Signs You Should Wait Before Refinancing Your Mortgage

A smiling person sitting at their dining table and writing in a notebook next to an open laptop.

Image source: Getty Images

There’s a phrase that has the ability to make almost any finance expert cringe, even as it brings a sense of comfort to those who are just about to buy a home: “I can always refinance.” And while it’s true that many homeowners can benefit from refinancing their mortgage, it isn’t necessarily always an option if you want to save money.

Here are three times when refinancing might not be right for you.

1. Current rates aren’t significantly lower than your current rate

As of writing, starting refinancing mortgage rates on 30-year loans for those with good credit range from 5.742% APR to 7.318% APR.

As a general rule, if the rates available to you aren’t at least 1% lower than your current rate, refinancing might not be worth it. Applying for a refinance means an inquiry to your credit history, which can lower your score. It also might not deliver on the savings you’re looking for given the costs associated with refinancing, such as origination and home appraisal fees.

If your current mortgage rate is at least 8.318%, refinancing might be a good idea. In that case, explore your options by checking out our list of top refinancing mortgage lenders.

2. It’s too soon to refinance

Depending on the type of mortgage you have, there may be time-based requirements that dictate when you’re eligible to refinance.

For example, conventional mortgages from Fannie Mae typically require you to own the title to your home for at least six months before you can use a cash-out refinance loan. And FHA loans bump that requirement up to a full year, plus you have to have 12 months of on-time payments to be eligible for a 95% cash-out refinance loan. So it pays to read the fine print here.

If you’re interested in refinancing but you bought your home within the last year, be sure to double-check the terms of your mortgage to make sure you’re eligible. If not, it’s a good time to focus on boosting your credit so you can qualify for the best rates once you can refinance.

3. Your credit doesn’t yet meet refinancing requirements

Refinancing is all about the timing — and that means your credit has to be in good shape when the rates make sense for you to refinance. For conventional loans, you’ll want a score of at least 620 to qualify. Credit score requirements vary by lender; while some lenders will accept scores as low as 580, others will have higher score requirements.

Regardless, the higher your score, the better your chances of securing a lower rate. So working to increase it is in your best interest. A few ways to do this include:

  • Paying down your revolving debt, such as that from credit cards.
  • Signing up for auto-pay on bills to prevent late payments.
  • Avoiding taking out new forms of credit, like loans, unless you really need them.
  • Getting copies of your credit reports and ensuring they don’t have errors that could be dragging down your credit score.

Increasing your score can take time, so patience is key here.

Refinancing can make sense for many homeowners who are looking for ways to save money on their home purchase. But it isn’t right for everyone, nor is it an option for everyone.

By understanding these situations, you’ll be able to recognize when the timing is right. That way, you can take advantage of the benefits of refinancing.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Related Posts

Okay, folks. It’s time to get serious about Social Security. I don’t like to be the person who sounds alarms and causes unnecessary panic. But

Image source: Getty Images The best credit cards have a lot of perks — cash back, travel rewards, purchase protection, and more. But what happens

Social Security benefits for spouses are a common source of confusion. MassMutual reports that 25% of surveyed adults near retirement age were unaware that spouses

Image source: Getty Images Most people pay their credit card bill once a month, but you’re allowed to pay more frequently. Technically you can pay