If you’re a homeowner, you’ve probably had this thought at least once:

“If rates drop a little more, I should refinance.”

But how much is “a little more”? What’s your number? That’s where the idea of a strike rate comes in.

What’s a strike rate?

Your strike rate is the interest rate that makes refinancing worth it for you. It’s your personal green light. It’s where the math makes sense and you feel comfortable making a move.

This isn’t a guess or a vague feeling. It’s a real number you and your loan officer can identify together based on:

• Your current rate
• How long you plan to stay in your home
• How much it would cost to refinance
• And what you’d gain from it

Once you have that number, your loan officer can keep an eye on the market and reach out when rates hit (or dip below) your strike rate. That way, you don’t miss your window.

Why people refinance (and why timing matters)

Once you’ve figured out your strike rate, you can be ready when the moment’s right. For qualifying borrowers, that moment might look different depending on your goal:

• Lower your interest rate (rate/term refinance): If you bought when rates were higher, this can reduce your monthly payment* or help you pay off your mortgage faster.
• Lower your rate and get cash (cash-out refinance): If you want to use equity and take advantage of a lower rate, this option does both.
• Just get cash (second lien or Home Equity Line of Credit): If your current rate is great but you still want to tap into equity for debt consolidation, home projects, or other big expenses, a second lien might be the smarter move.

Does it make sense to refinance at a higher rate?

It might sound surprising, but refinancing at a higher rate can still be the right move in certain situations.

Debt consolidation:

If you’re carrying high-interest credit cards or personal loans, refinancing can simplify your payments and lower your total monthly obligations, even if your new mortgage rate is higher.

Lower monthly payment:

If your loan balance has dropped significantly, refinancing into a longer term could reduce your monthly mortgage payment*. You may pay more over time, but gain short-term breathing room.

Keep your rate, still use your equity:

If your current rate is worth holding onto, a second lien or HELOC can let you tap into equity without changing your original loan terms.

Refinancing isn’t always about the lowest rate, it’s about making your mortgage work for you.

Know your break-even point

Your break-even point is how long it takes for the savings from your new loan to cover the cost of refinancing. It’s a big part of finding your strike rate.

For example, let’s say refinancing will cost you $5,000 in closing costs. If your new loan saves you $200/month, you’ll break even in about 25 months**. After that, the savings are yours.

Check out this blog on calculating your break-even point for a closer look.

The calculation can become a lot more complex if you’re using a cash out refinance to consolidate debt, but don’t worry, your loan officer can walk you through it.

You don’t have to watch rates every day. We do it for you

Movement loan officers are in the market every day. When you tell us your strike rate, we’ll keep tabs on it. When the moment’s right, we’ll let you know so you can act fast and confidently.

No guesswork. No hoping you didn’t miss your chance.

Want to find your strike rate?

Reach out to your Movement loan officer. They’ll help you run the numbers, talk through your goals, and get a game plan in place. Even if now’s not the time, you’ll be ready when it is.

*Qualification is required. By refinancing your existing loan, your total finance charges may be higher over the life of the loan.

**Data is hypothetical and for example purposes only. Reach out to a loan officer for your specific situation.