Is refinancing actually worth it?
A lower advertised rate is a great headline and a poor decision tool on its own. Whether a refinance helps you depends on the full picture, not just the number on the billboard.
Count the cost of switching
Refinancing can carry discharge fees on your current loan, costs to set up the new one, and break costs if you are on a fixed rate. A lower rate that takes two years of savings just to cover the switch is not the win it looks like. We add it all up first.
How long will you keep the loan
If you plan to sell soon, the savings have less time to outweigh the switching costs. If you are settling in for the long haul, even a modest rate drop can add up. Your timeline changes the answer.
The honest test
I apply one test. Does this clearly leave you better off, all costs counted. If yes, we move. If it is marginal or worse, I will tell you to stay where you are. I would rather keep your trust than chase a switch that does not help you.
If you plan to sell soon, the savings have less time to outweigh the switching costs.
If any of this is sitting on your mind, the fastest way through is a short chat. No cost, no pressure.