You may have heard or read that you should only refinance when you can lower your interest rate by 1%. In my experience, this may not always be the case. It may make sense to refinance by lowering the rate by just 0.25 percent. For example, if you are paying mortgage insurance, you may be able to eliminate this payment if your home has increased in value over the past few years. Plus, there are so many new options to eliminate PMI these days. If you have an adjustable mortgage, you may want to convert to a fixed mortgage to lock in a low interest rate. In order to decide whether or not it’s time to refinance, it is necessary to calculate your payback period. The shorter the payback period, the better. As a general rule, if you can recoup the finance charges within 14-24 months, it’s a good deal. Deciding to refinance can be simple or complex depending on your situation and financial goals. It’s never “One Size Fits All”. I’d be happy to meet with you to discuss your options and whether or not it makes sense for you to refinance at this time. Should you refinance? To answer this question, complete the section below for a comprehensive analysis.