By David Parks · eXp Realty · The Apollo Group · 2 min read
Refinancing replaces your current mortgage with a new one. It may make sense if you can lower your rate, shorten your term, remove mortgage insurance, or access equity, and if you will stay long enough to cover the costs.
Refinancing has closing costs, often several thousand dollars. Divide the costs by your monthly savings to find the break-even point.
How long you plan to stay, whether you are extending your term, and how your new rate compares to your old one. Cash-out refinances may reduce your equity.
Check your credit and home value, and get quotes from several lenders. Compare the Loan Estimates, not just the rate.
A lender can run the numbers for your situation. The right time is when savings outweigh the cost and fit your plans.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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