Stay or refinance
Should I refinance in 2026?
Most borrowers who locked near 3% in 2020–2021 should stay. The desk 30-year is 6.95%. This page starts with that typical loan so the answer is honest: payment usually goes up. Change the current rate if you are above the market.
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Desk 30-year
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Need the shorter break-even tool? Refinance calculator. Payment on a set loan size: $400,000 example.
Verdict
Stay put
Keep paying
$1,644
After refi
$2,118
Monthly change
+$474
Break-even
Never
Rule used here: at least 50 bp below your rate and costs recouped inside 36 months. Cash-out, ARM resets, and selling soon are different math.
Questions people type into Google
- Should I refinance if my rate is 3%?
- Almost never at a 6.95% 30-year. You would be swapping a cheap loan for a more expensive one and restarting a 30-year clock. Wait unless you must pull cash or drop PMI another way.
- When does refinance make sense?
- If you are 75 bp or more above the desk average, you plan to keep the house past the break-even, and closing costs are not being rolled into a much larger balance. Use the numbers, not a lender’s mailer.
Related tools
- Mortgage paymentPrincipal, interest, taxes, insurance, HOA, and PMI from today’s 30-year average.
- Home affordabilityBack into a purchase price from take-home pay, debts, and a 28/36 rule.
- Auto loanPayment, interest, and total cost by credit tier using Q2 2026 APRs.
- Refinance break-evenMonths to recoup closing costs against today’s 30-year rate.