It’s the Best Time to Refinance a Mortgage in 4 Years–Here's How to Do It Right

With federal fund rates low and strong signals, the Federal Reserve may reduce rates again in 2026. Now is as good a time as any to refinance a home mortgage.

Brian O'Connell

Published: 2/14/2026, 11:00:16 PM EST

It’s the Best Time to Refinance a Mortgage in 4 Years–Here's How to Do It Right — A for sale sign in front of a home in Arlington, Va., on Aug. 22, 2023. (Andrew Caballero-Reynolds/AFP via Getty Images)

U.S. 30-year fixed home mortgage rates have fallen to around 6.1 percent as of mid-February, the lowest since 2022.

With federal fund rates low and strong signals, the Federal Reserve may reduce rates again in 2026. Now is as good a time as any to refinance a home mortgage.

“Rates have bottomed out, and there is optimism that they are going to stay in the same range for the rest of the year,” said Corey Vandenberg, mortgage loan officer at Lake State Mortgages. “So there's no reason to wait.”

If your home mortgage rate is above 6 percent, refinancing could save you hundreds of dollars per month. Before you start that process, however, take the following tips into account.

Make Sure Refinancing Makes Sense For You

Once a homeowner hears that interest rates have dropped, it can be tempting to jump on the wagon without being sure refinancing makes financial sense.

Some professionals argue that if the rate is 1 percent or even 0.50 percent below your current rate, it’s a good time to refinance, but Irene Amato, a licensed mortgage loan originator and registered mortgage broker at A.S.A.P. Mortgage, doesn’t see it that way.

“You have to take into account the loan amount, the monthly savings, the costs, the new term timetable versus the original term, and the time you think you will stay in the property,” she said. “Not everyone knows the time they will stay in a property, but if you’ll be upsizing or downsizing in a short period of time, take that into consideration.”

Reach Out to a Trusted Mortgage Professional

Your next step is to connect with a local mortgage professional who will take the time to explain the savings and costs and address any questions you may have.

“The entire process can be completed in 30 days on most transactions,” Amato said. “Also, make sure to review the costs versus savings and items listed above before making a decision."

Be Cautious When Chasing a Lower Rate

Pay attention to the discount points and other fees that the lender is charging.

“They could very well be putting you in a worse situation, with, for example, a higher loan balance that takes longer to pay off,” Vandenberg said. “Watch the monthly payment, if you want to really save money, see what it will save you a month, then subtract what you have left on your current mortgage.”

Don’t Assume Your Current Lender Will Offer the Best Refinancing Deal

Too often, homeowners mistakenly believe their existing lender offers the best rates or that refinancing with their current lender will be easier because they already have a mortgage.

“It’s actually common for existing lenders to not offer the most attractive rates to clients because they claim to be easier and assume that clients will stay with them, so they can be less competitive,” Amato noted.

Amato recommends using a mortgage broker for any type of mortgage financing. “Mortgage brokers are independent and work for the client, not the lender,” she said. “They search programs, rates, and products for the client with multiple lenders. Refinancing can be a helpful tool if utilized the right way and with a full understanding of the process.”

The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.