Owning a home is every American’s dream, and the journey to get there can be tricky and exciting. One aspect you’ll need to consider is how much you’re paying for your housing loan. If it’s been a few years since you’ve taken a mortgage, you may be wondering if there’s a way to adjust your monthly payments to match your budget better. The good news is that a home loan refinance allows you to do this.

Refinancing your current mortgage means replacing it with a new one, often with better terms. Usually, those who pursue mortgage refinance do it to save money, but that isn’t always guaranteed, depending on interest rates and other factors.

Here are four signs that indicate it’s time to refinancing your home mortgage:

You Have Access to the Best Refinance Rates

Due to multiple factors like inflation, the economy, and the U.S. Federal Reserve, mortgage rates fluctuate all the time. That means that mortgage interest rates will be lower at some point than when you first secured your current loan. If they have dipped to a significantly lower figure, then it’s worth considering a mortgage refinance. Taking a loan with a lower mortgage rate may save you money in interest charges and monthly payments than sticking to your existing mortgage.

Your Home Surged in Value

Another sign that you should consider refinancing your mortgage is if your home’s value has surged. For example, if you’ve made major home improvements to your home or if your neighborhood has generally skyrocketed in value, then you’ll want to refinance your mortgage, particularly if you have high-interest debt that would benefit from consolidation. A high assessed value for your home translates to increased home equity, which means you’ll have even more borrowing power than before.

Your Income or Credit Score Increased

If your credit score and income have considerably increased since you took out your initial loan, then you have a better chance of getting a new mortgage at more favorable terms. Lenders are more willing to offer lower rates to borrowers with high credit scores and income since they are more likely to pay their debts on time. If you refinance your mortgage under these conditions, you’ll end up saving a lot of money in the long term.

You Have an Adjustable Rate Mortgage and Rates Have Grown

Lastly, if you have an adjustable-rate mortgage or ARM, that means the rates fluctuate according to different factors. While this can be advantageous when rates are low, they can also run against your favor when rates are sky-high. Increasing mortgage rates don’t bode well for ARMs, as they vastly increase the cost of your home. If you find yourself in this situation, it’s worth considering refinancing your mortgage and moving to a fixed-rate mortgage instead.

The Benefits of Refinancing Your Home Mortgage

There are many benefits of refinancing your mortgage. If your existing mortgage is at a high interest rate, that means you’ll pay even more for your home in the long run. If you can reduce the interest rate even by 1 percent, then you’ll benefit from more savings, where a mortgage refinance is worth considering. 

You can also adjust your loan’s term, which will help make monthly payments easier or allow you to pay for your mortgage faster, depending on your situation. If you shorten your term, your monthly payments will increase, but you’ll also save on your interest rate, allowing you to save money over the life of your loan. 


A home loan refinance can solve many of your financial problems or allow you to save more money in the long term, but it is crucial to understand what it means and how it affects your situation. If any of these four signs sound familiar to you, then you’ll definitely benefit from refinancing your mortgage.

If you’re looking for the best refinance rates, head on over to Cal Coast Funding. We are mortgage lenders in San Diego that offer competitive rates and outstanding services with over 20 years of lending experience. Our loan programs include conventional loans, VA loans, FHA loans, reverse mortgages, and home loan refinance. Contact us today to find out more about our mortgage solutions!