Top mistakes: resetting to 30 years on a nearly paid-off loan, ignoring PMI removal in the savings math, overpaying for points, and refinancing for a rate drop too small to recoup.
Term and math mistakes
Refinancing a loan you’ve paid for years back to a fresh 30-year term can add interest even at a lower rate. Choose a shorter or custom term. And always run the break-even — include dropped PMI, which people often forget.
Timing mistakes
Chasing a rate drop too small to recoup the fees, or refinancing right before a move, wastes money. We confirm you’ll stay past break-even first.
Frequently asked questions
How do I avoid adding interest?
Choose a shorter or custom term instead of restarting at 30 years, so you don’t stretch the payoff.
Am I forgetting anything in my savings?
Often PMI — if you can drop it, include that in the monthly savings; it can transform the break-even.
When is it not worth it?
When the rate drop is tiny, you’ll move soon, or points don’t recoup. We’ll tell you honestly.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.