Is it a good time to refinance mortgage?

than three years, it may not make sense for you to do that.”

Said another way: if you’re only a few years out from paying off your mortgage, or you’re planning to move before too long, refinancing might not make sense for you because you may not recoup your refi closing costs before you’re ready to move on from the loan.

On the other hand, every borrower’s situation is slightly different, so it’s important to calculate all the costs and savings for yourself to determine your own breakeven timeline.

“I’ve had situations with people sitting out there with mortgage rates in the high threes, low fours, sometimes as high as 5%, and they’re recouping their costs sometimes in less than 12 months,” Sahnger said, For borrowers like that, refinancing could still make sense even if you’re planning to move or pay off your loan a few years later.

“You have to look at what the total costs are going to be,” he said.

Don’t just look at your interest savings, either. The cost of your new mortgage includes all the fees you’ll encounter at closing — typically 2 to 6% of your loan’s total value — and those charges will affect your breakeven date, too.

Now is a great time for many people to refinance, and the window for savings could be closing on many borrowers before too long.

If you haven’t refinanced in the last year, it’s worth looking around to see how much you might save. Be sure to calculate all your costs and consider how much you’ll need to save to make a refi worth it.

And, as always, you’ll definitely want to shop around and compare multiple loan offers before starting the application process. Otherwise, you may wind up leaving money on the table.