Will refinancing help lower my mortgage payment?

If rates are lower than when you bought, or if you’ve improved your credit score, refinancing can reduce your monthly payment. You can also extend the loan term to ease payments, but it’s best to weigh that against the total interest paid over time.

Refinancing can lower your payment, but it depends on both the interest rate you obtain and the term you choose. When you refinance you are essentially taking out a new loan to pay off the old one. If current rates are significantly lower than your 4.7% and you have good credit, you could refinance to a lower rate, which would reduce the interest portion of your payment. You could also stretch the loan back out to a fresh 30‑year term, which would lower the monthly payment because it spreads the remaining principal over a longer period. The trade‑off is that you would be starting over on the amortization schedule and could end up paying more interest in the long run.

You also need to factor in closing costs, appraisal fees and any points. These add to your loan balance or require cash up front. A good lender will show you the new payment, total cost of the loan and the "break‑even" point where your monthly savings exceed the costs. Sometimes a 15‑ or 20‑year refinance at a much lower rate keeps your payment similar but saves you tens of thousands in interest.

If your financial stress is temporary, speak with your current lender about a modification or forbearance program before refinancing. If you intend to stay in the home long enough to recoup the costs and the new rate is low enough, refinancing can be a good tool to lower your monthly payment. Shop with several lenders, ask about closing costs and compare the overall savings before you commit.

Based on current interest rates you would likely have a higher interest rate if you were to refinance. You could essentially start your 30 year loan over which could lower your payments, but you would likely end up paying significantly more in interest by going that route.