Is a refinance right for me right now?

Question

Right now my current big name lender has been calling me for a week to refinance. I haven't taken his call because in previous conversation's we ran the number and there was almost no savings; but it increased my loan by over 10k in refinancing costs. I currently have a 6.99% interest rate and would love to get it lower if possible but that def. wont happen with this company...

I was thinking if maybe a DSCR loan would be the way to go or would a conventional refi be better?

I was thinking if maybe a DSCR loan would be the way to go or would a conventional refi be better?

Elias Halvorson · Answer

Dude, help us help you. Need more info. Nobody can tell you anything with such little info. What type of loan are you currently in? What is the property type? Condo? Single family? Duplex? Or? What is the mortgage amount? How much is your property worth? What is your credit score? Need all of those questions answered before anyone can give you decent advice.

Mike S. · Answer

I appreciate the help I wasn't sure what info to post haha

It's a Single family home. Conventional loan with a balance of about 176k. Current estimate value is about 340k. And my credit score is excellent, in the 800's.

Andres Montbrun · Answer

Mike, I think the advice here about waiting until there’s at least a 1% drop makes sense if you’re looking at the rate in isolation.

One thing I’ve noticed lately is that most people are making the refinance decision using static rate quotes, when in reality, market conditions shift daily — sometimes presenting short-lived opportunities where the numbers do make sense, even if your lender says otherwise.

We recently came across a tool that tracks your exact loan terms against market movements in real time, and sends you an alert when a refinance could genuinely save you money after closing costs. It does the “breakeven math” for you every day, so you’re not relying on a lender’s sales pitch.

The benefit is you don’t have to guess or take calls that don’t pencil out — you’d only act when the numbers hit the threshold you set.

If you'd like, I can point you toward it — it could be useful whether you opt for DSCR, conventional, or just wait.

Jake Yuskaitis · Answer

With your FICO you can for sure get lower than 6.99%, but it has to be worth it. There will still be closing costs, etc. I just quoted someone 6.2% DSCR no income, no taxes yesterday so it is possible.

Erik Raz · Answer

Unless I would really need the money I would not refinance. If I would have a great deal and I am short by X amount. That's a different story.

Zachary Deal · Answer

Hey Mike, a 6.99% is a solid rate still based on the market (depending on LTV, credit score, DSCR, property type, etc) you could lower it some but likely not enough to make it worth it. Waiting until rates drop further is likely your best bet.

Zach Wain · Answer

You said DSCR, so that means it is a rental home.  You will not find a refinance worthwhile for any rental home if you are at 6.99%.  The added closing costs to buy the rate down are not worth it!  Wait, and hope rates move lower

Jeffrey Blais · Answer

My advice is the same as Erik's.  Ideally you will want to reduce the interest rate by 1%.  Hopefully better days are ahead for mortgage interest rates!!

Erik Estrada · Answer

Honestly you are better off waiting until you see a full percentage decrease in rate to refinance. Unless you are planning to cash out and deploy the proceeds into another performing asset.

Patrick Roberts · Answer

Get a quote and look at the breakeven on it. If the breakeven period is under 2 years, its not bad. Under a year is almost always worth it.

Is a refinance right for me right now?

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