Run the break-even, not the rate drop
Divide the total cost of the refinance by the monthly savings. If you'll keep the home and the loan longer than that number of months, it's worth considering. If not, it isn't — no matter how good the rate sounds.
Watch the reset on your term
Restarting a 30-year clock on a loan you've paid for eight years can cost more in total interest even at a lower rate. Shorter terms or a custom term often make more sense.
Cash-out for the right reasons
Consolidating high-interest debt, funding a real improvement, or buying out a co-owner can be smart. Cash-out at a much higher rate to fund short-term spending usually isn't.
Drop mortgage insurance
If your value has risen enough, refinancing out of FHA or USDA mortgage insurance can cut the payment even without a rate improvement.
No-cost isn't free
A 'no-cost' refinance means the costs are paid through a higher rate. Sometimes that's the right call. I'll show you both versions side by side so you decide.