--- title: 3 New Rules for Refinancing Your Mortgage description: Interest rates are dropping and you're wondering if it's a good time to refinance your mortgage. Here are 3 signs you might want to go for it. image: https://go.hfcu.org/hubfs/Untitled%20design%20(76).jpg --- [![MoneyWisdom_HFCU_r2](https://go.hfcu.org/hs-fs/hubfs/MoneyWisdom_HFCU_r2.png?width=464&name=MoneyWisdom_HFCU_r2.png "MoneyWisdom_HFCU_r2")](https://go.hfcu.org/blog) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) - [Auto](https://go.hfcu.org/blog/topic/auto) - [Business](https://go.hfcu.org/blog/topic/business) - [Credit Score](https://go.hfcu.org/blog/topic/credit-score) - [Home](https://go.hfcu.org/blog/topic/home) - [Credit Cards](https://go.hfcu.org/blog/topic/credit-cards) - [Life Changes](https://go.hfcu.org/blog/topic/life-changes) - [Insurance](https://go.hfcu.org/blog/topic/insurance) - [Investments](https://go.hfcu.org/blog/topic/investments) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - 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The old rule of thumb was when interest rates went down by a point, it was a good time to refinance. "The rules have changed," said Joshua Rakiey, Hanscom Federal Credit Union's assistant vice president of mortgage origination. "There are some new guidelines you should pay attention to if you're looking to do a rate-and-term refinance on your mortgage — that is, if you want to reduce your interest rate and stay roughly at the same term." 1. **Interest rates are a half a point lower than your current rate.** "It doesn't have to go down by a full point, especially when the other two rules apply. Just a half a point can be worth it." 2. **The refinance adds five years or less to the length of your loan.** "If it reduces the number of years on your loan, even better," said Rakiey. 3. **Refinancing allows you to recover your closing costs in under five years.** "Much less than five would be even better," he added. Hanscom FCU has a [mortgage refinance calculator](https://www.hfcu.org/calculators/mortgage-refinance-calculator.html) that will show you how much refinancing your mortgage can save you. It will also calculate the number of months it'll take to break even on closing costs with your new reduced monthly payment. There may be other reasons why you want to refinance where these new rules may not be applicable. For example, you might want to refinance if your credit has improved significantly, which would give you a lower interest rate on a refinance, or you want to do a cash-out refinance, which would replace your current home loan with another for more than you owe on your home. (The difference is given to you; homeowners may use it on home improvements, college costs, or consolidating higher-interest debt.) If you're curious if it's the right time to refinance, [contact our Hanscom FCU mortgage department](https://www.hfcu.org/borrow/home-loans/mortgages.html#contact). One of our mortgage specialists can go over the numbers with you and let you know if refinancing right now makes sense for your situation. [![Learn More About Refinancing Your Mortgage](https://no-cache.hubspot.com/cta/default/118438/ac580acf-cd28-444a-8c79-719815b90a10.png)](https://cta-redirect.hubspot.com/cta/redirect/118438/ac580acf-cd28-444a-8c79-719815b90a10) *Others are reading:* - [Introducing Hanscom FCU's No-Money-Down Mortgage](https://go.hfcu.org/blog/introducing-hanscom-fcus-no-money-down-mortgage) - [Are You Ready to Refinance?](https://go.hfcu.org/blog/are-you-ready-to-refinance) - [The 5 Benefits of Renovating Your Bathroom](https://go.hfcu.org/blog/bid/142444/what-are-the-benefits-of-updating-a-bathroom) - [What Does an Underwriter Look for When Reviewing a Home Appraisal?](https://go.hfcu.org/blog/bid/148271/what-does-an-underwriter-look-for-when-reviewing-a-home-appraisal) - [How Do Homeowners Use Home Equity?](https://go.hfcu.org/blog/how-do-homeowners-use-home-equity) ** [Home Equity](https://go.hfcu.org/blog/topic/home-equity), [Home Ownership](https://go.hfcu.org/blog/topic/home-ownership), [Mortgage](https://go.hfcu.org/blog/topic/mortgage) [** How to Liquidate an Estate ](https://go.hfcu.org/blog/how-to-liquidate-an-estate) [** 3 New Coronavirus Scams to Watch Out For ](https://go.hfcu.org/blog/3-new-coronavirus-scams-to-watch-out-for) ### About Author ![Hanscom Federal Credit Union](https://go.hfcu.org/hubfs/HFCU-Profile-1000x1000.jpg) Hanscom Federal Credit Union Hanscom Federal Credit Union, a purpose-driven $1.9 billion organization based in Littleton, MA, empowers its members to achieve financial wellness. Hanscom FCU serves over 95,000 members across the country and overseas through 16 branches, over 100,000 surcharge-free ATMs, 5,000 contact centers, and a web-based branch. Related Posts [![Your First Step in Buying a Home: Pre-Approved for a Mortgage](https://go.hfcu.org/hubfs/Untitled%20design%20(85).jpg) Your First Step in Buying a Home: Pre-Approved for a Mortgage ](https://go.hfcu.org/blog/bid/172300/the-mortgage-application-process-get-pre-approved-before-you-look) [![How to Buy a Home With No Money Down](https://go.hfcu.org/hubfs/Canva%20images/Canva%20Design%20DAFi0NubHVw.png) How to Buy a Home With No Money Down ](https://go.hfcu.org/blog/how-to-buy-a-home-with-no-money-down) [![HELOC vs. Cash-Out Refinancing: What's the Difference?](https://go.hfcu.org/hubfs/FAMILY%20doing%20home%20renovation.png) HELOC vs. Cash-Out Refinancing: What's the Difference? ](https://go.hfcu.org/blog/heloc-vs.-cash-out-refinancing-whats-the-difference) ** - [**](http://www.facebook.com/share.php?u=https://go.hfcu.org/blog/3-new-rules-for-refinancing-your-mortgage/) - [**](https://X.com/share?url=https://go.hfcu.org/blog/3-new-rules-for-refinancing-your-mortgage/) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://go.hfcu.org/blog/3-new-rules-for-refinancing-your-mortgage/&summary=&source=CeBIT) ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** The website you are about to visit is solely the responsibility of the merchant or other party providing the site. 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Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://X.com/HanscomFCU The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://www.instagram.com/hanscomfcu/ The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://www.linkedin.com/company/hanscomfcu/ The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### http://www.youtube.com/c/HanscomFederalCreditUnion The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ### Popular Posts [What You Need to Know About Putting Your Home in a Trust](https://go.hfcu.org/blog/what-you-need-to-know-about-putting-your-home-in-a-trust) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Untitled%20design%20-%202022-02-10T072804.753.jpg) [What You Need to Know About Your Federal Tax Bracket](https://go.hfcu.org/blog/what-you-need-to-know-about-your-tax-bracket) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Untitled%20design%20-%202021-03-22T123305.900.jpg) [6 Boat Types to Get on the Water](https://go.hfcu.org/blog/6-boat-types-to-get-on-the-water) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/images/Jet_Ski.jpg) [23 Organizations Dedicated to the Needs of Seniors](https://go.hfcu.org/blog/23-organizations-dedicated-to-the-needs-of-seniors) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Senior%20citizens.jpg) [9 Smart Moves for Lottery Winners](https://go.hfcu.org/blog/lottery) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/images/lottery_winner.jpg) ### Recent Posts - [![National Credit Union Administration](https://go.hfcu.org/hs-fs/hubfs/NCUA-logo-small.png?width=95&name=NCUA-logo-small.png) ](https://www.ncua.gov/) [![Equal Housing Lender](https://go.hfcu.org/hs-fs/hubfs/EHL-logo-small.png?width=65&name=EHL-logo-small.png)](https://www.hud.gov/fairhousing) - @ 2023 [Hanscom Federal Credit Union](https://www.hfcu.org/) - Federally insured by the National Credit Union Administration. - [Privacy Policy](https://www.hfcu.org/content/docs/Privacy_Notice.pdf) **Disclosure:** Hanscom Federal Credit Union does not provide and is not responsible for any products, services, or overall website content available at any third-party sites linked within this blog. Moreover, Hanscom Federal Credit Union's privacy policies do not apply to any of the linked websites within this blog. Please consult the privacy disclosures on those linked sites for further information. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Hanscom Federal Credit Union" }, "dateModified" : "January 19, 2022, 2:17:25 AM", "datePublished" : "2020-05-02 04:56:43", "description" : "Interest rates are dropping and you're wondering if it's a good time to refinance your mortgage. Here are 3 signs you might want to go for it. 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