Refinancing can save you a lot of money — but only if it actually makes sense.

I recently recorded a full breakdown explaining what refinancing really is, how it works, and how to protect yourself from bad refinance offers. If you’d rather watch or listen, you can check out the full video here:
👉 https://www.youtube.com/watch?v=GT41gT6Lhlg 
(And if you’re a homeowner, make sure you subscribe — rate shifts matter.)

Now let’s break this down in plain English.

What Is a Refinance?

When you refinance, you take out a new mortgage to pay off your old one.

That’s it.

You are not “adding” a second mortgage. You are replacing the old loan with a new one, usually to get a lower rate or better terms.

Most of the refinances happening right now are what we call rate-and-term refinances, meaning:

• You’re lowering your interest rate

• You’re keeping roughly the same loan balance (plus closing costs, if financed)

Can You Refinance Without Bringing Cash to Closing?

Yes.

This is one of the biggest misconceptions.

With a refinance, closing costs can typically be rolled into the new loan amount. So instead of paying fees out of pocket, they’re added to the new balance.

Example:

• You owe $500,000

• Closing costs are $8,000

• New loan becomes $508,000

You don’t have to drain savings to lower your rate.

But here’s where people get into trouble…

Not All Refinances Make Sense

Just because a lender says “You can refinance” doesn’t mean you should.

This is where math matters.

Some lenders advertise super-low rates but hide massive fees. I’ve seen situations where someone is saving $200 a month… but paying $20,000 in fees to get there.

That is not savings. That’s borrowing from your equity.

Refinancing only makes sense when the savings outweigh the cost within a reasonable time frame.

Understanding the Break-Even Point

The break-even point is simple:

Total closing costs ÷ monthly savings = months to recover the cost

Example:

• $2,400 in costs

• $200 monthly savings

• Break-even = 12 months

That’s solid.

But:

• $20,000 in costs

• $200 monthly savings

• Break-even = 100 months

That’s over 8 years.

If you’re moving in two years? That refinance just cost you money.

The “1% Rule” Is Not Real

You may have heard:
“You shouldn’t refinance unless rates drop at least 1%.”

That’s not universally true.

On a $1,000,000 loan, a 0.375% drop can be significant.
On a $100,000 loan, you may need a 1.5–2% drop to make it worthwhile.

There is no magic number. It depends on:

• Loan size

• Closing costs

• How long you plan to stay

• Your financial goals

This is why blanket advice doesn’t work.

Be Careful With “No Fee” Refinances

If someone says:
“There are no fees.”

Read the loan estimate.

Always.

Sometimes “no fees” just means the costs are hidden in:

• A higher rate

• Discount points

• Rolled-in costs you weren’t expecting

You are signing paperwork stating you reviewed it. If you don’t actually review it, you can’t undo it later.

And remember, refinancing affects your equity. That’s your future money.

Protect it.

When Refinancing Is a Powerful Tool

Refinancing is not bad. It’s actually an incredible financial tool when used correctly.

It can:

• Lower your payment

• Shorten your term

• Improve cash flow

• Help you eliminate mortgage insurance

The key is working with someone who will tell you when not to do it.

If you want to understand how interest rates move and why timing matters, you may also find this helpful:
👉 Headlines vs. Reality: What’s Actually Happening in the Housing Market
It explains how market shifts impact mortgage rates and why refinance windows open and close.

Final Thoughts

A refinance should:
✔ Save you meaningful money
✔ Pay for itself within a reasonable time
✔ Align with your long-term plans

If it doesn’t hit those three — pause.

Refinancing isn’t about reacting to headlines. It’s about strategy.

If you want us to run the numbers and tell you honestly whether it makes sense (yes or no), we’re happy to help.

📞 Call or Text Me: (786) 933-2077
🏡 Get Pre-Approved: https://www.zerostressmortgage.com 
📅 Set Up a Time to Chat: https://calendly.com/jennifer-beeston 

No pressure. Just math and transparency.