When is the right time to refinance?

Where are rates headed?

While rates are trending down and have been the lowest in 2025, the Federal Reserve is cautiously optimistic about reducing the Fed Funds rate. The Fed is concerned about where inflation could head given our current economic factors such as tariffs and jobs reports. They remain committed to getting closer to the 2% target. As a result, small rate cuts (25 bps) are anticipated as of now.

When is the right time to refi?

If you have purchased or refinanced within the last two years or so, chances are that you may now have an opportunity to refinance, saving you interest each month. But, when is the right time to refinance and when does it make financial sense?

The answer is: it depends. It depends on a variety of factors but the biggest one of all is – how long do you plan on staying in this house? For example, on a $1,000,000 mortgage at 7%, your monthly principal and interest payment is $6,653. At 6%, the monthly payment is $5,996 – a monthly savings of $657. However, if you plan on moving in the next 6 months, this refinance probably doesn't make sense since you will have standard costs to refinance. Contact me for a personalized analysis to see what is the best course of action for you.

Tips Corner

With the holiday season right around the corner, as the weather dips, those furnaces will get fired up again. Now is the time to check and replace the air filters in your home, especially with the the fires and other air pollution Los Angeles County has experienced in the past year. Also, with dirty filters, your system needs to work harder to push air through which can result in higher utility bills. Preserve your investment by regularly replacing your air filters which can then extend the life of your HVAC system.

"WE DON’T NEED TO BE IN A HURRY TO CUT [RATES]"— Fed Chair Jerome Powell