Should You Refinance? A Quote-Comparison Checklist for Any Market

People ask me "should you refinance?" more often when the news is full of mortgage headlines. My answer doesn't change with the headlines. Whether a refinance makes sense for you depends on your goal, how long you'll stay, and what the quotes in front of you actually say. This article is the checklist I use to help homeowners shop for a refinance in any market. I'm not going to quote or predict rates here. If you want today's pricing, ask me for a quote, and we'll compare it to your current loan.

Two articles already cover neighboring ground, so I'll keep this one on the shopping process. For the math on when a refinance pays for itself, read the refinance breakeven point. For the events that tend to make people start thinking about it, read when to refinance your mortgage.

A refinance is a tool. Start by naming what you want it to do, because different goals lead to different loans:

Does shopping for a refinance hurt my credit?

Within a 45-day window, the CFPB says multiple mortgage credit checks are recorded as a single inquiry. Some older credit-score versions use a 14-day window instead, so to be safe keep your mortgage credit checks within about two weeks. Try to keep your quote shopping inside that window.

What should I compare between refinance offers?

Compare the Loan Estimates side by side: loan amount, term, loan type, monthly payment, total closing costs and any points or credits. Then check each one against your goal.

How long does a rate lock last?

The CFPB says locks are typically available for 30, 45 or 60 days, and sometimes longer. Ask about extension costs in case closing is delayed.

Is a lower payment always the better deal?

Not necessarily. If you refinance into a longer term, a lower payment can come with more total interest. Look at the total cost over the time you will keep the loan.

Can I cancel a refinance after I sign?

For most refinances of your home, federal law gives you three business days to cancel, according to the CFPB. You have to give written notice to your lender.