Does a Refinance Make Sense for You?
- Liana Pomeroy
- Oct 3
- 3 min read
We all remember just a few years ago when the mortgage marketplace looked completely different.
Rates were super low.
Home prices were climbing like crazy.
If you wanted to buy a home, you were competing against everyone else who also wanted to buy.
It seemed like everyone refinanced into some of the lowest mortgage rates in history.
Then things flipped fast.
Rates climbed so quickly it was hard to keep up. Depending on when you bought a home in the past few years, you could be sitting on a mortgage rate that pushes 8%.
What About Temporary Buydowns?
To soften the shock of those higher rates, many buyers used what’s called a temporary rate buydown. That meant you got a “starter rate” — sometimes in the 3s or 4s — and then each year the rate moved back toward your actual fixed rate.
Fast forward: many of those buydowns are expiring now, leaving homeowners with rates back in the high 7s or even low 8s.
But here’s the good news: with today’s market, permanent 30-year fixed rates are hovering in the high 5s to low 6s for many homeowners. That’s a huge improvement over what many people are currently paying. Actual terms vary depending on your specific situation, but this is REAL savings if you qualify.
Who Should Consider Refinancing?
If your rate starts with a 7 or 8: You may be able to save hundreds per month.
If your temporary buydown is expiring soon: Don’t roll into a higher payment when permanent rates are actually lower.
If you’re paying mortgage insurance (MI): With today’s appreciation, many homeowners have crossed the 20% equity threshold — which means you can refinance and eliminate MI altogether.
If you need someone off your mortgage: Divorce, breakups, or business changes happen. Waiting for 3% rates again isn’t realistic. Now’s the time to get that clean refinance done.
If you want to tap equity: Maybe you’ve got high-interest debt, or you’re ready to update the kitchen. A refinance can free up cash at a much lower cost than credit cards or personal loans.
Real-Life Recent Client Scenario: $650,000 Loan
Let’s say you bought a $722,000 home two years ago with 10% down.
Before (Old Loan)
Loan amount: $650,000
Rate: 7.99% (APR 8.12% with $3,500 closing costs)
Private Mortgage Insurance (MI): $135/month
Payment: $4,765 + $135 MI = $4,900/mo
You used a buydown to ease in, but it’s expiring. Your rate is rising, your payment is feeling a bit daunting, and you’re still paying mortgage insurance even though between market appreciation and the sweat equity you've put in, you really shouldn't need it.
After (Refinance Now)
Loan amount: $650,000
Rate: 6.125% (APR 6.27%)
20% equity = no MI
Payment: ~$3,950/month
The Difference
Monthly Savings: $995
Annual Savings: just under $12,000!
Permanent stability with no MI
What If You Already Have a Low Rate?
If you were one of the lucky ones who locked in a mortgage in the 2s or 3s — hang on tight! That’s gold.
But sometimes, life happens:
Divorce means you need your ex off the mortgage.
You want to consolidate debt.
You’re ready to remodel.
Even with a low rate, those situations might make refinancing the smart move.
Stop Waiting for 3% Rates
It’s important to remember: those historically low rates weren’t “normal.” They were fueled by emergency economic policies, subsidies, and government support during COVID to keep money flowing and markets moving.
A healthy mortgage market can’t sustain near-zero rates. Banks and investors need returns. Which means 3% rates aren’t likely to return anytime soon.
Bottom Line
If your mortgage rate starts with a 7 or 8, if your temporary buydown is expiring, or if you’ve been waiting for “the right time” — now is it.
Rates are lower.
Equity may be higher depending on your market and your specific situation.
And this window won't likely last for long.
Ready to find out your savings? Everyone's situation is different and actual rates and fees vary depending on how you qualify, your FICO score, what kind of home you own, how you own it and the type of mortgage we use. The best way to find out if a refi makes sense is to reach out to your favorite mortgage lender. Let’s run your numbers and see what’s possible.
📩 Email: liana@pomeroylending.com
📱 Phone: (303) 601-5197
🔗 Apply Online: pomeroylending.com
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Liana Pomeroy
Senior Mortgage Loan Advisor
Equal Housing Lender | Licensed in CO, FL, CA, TN & TX
All loans subject to approval. Conditions apply.
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