A Smart Way to Know When to Refinance? Set Your Strike Rate

by OnDemand Realty

If you’re a homeowner, you’ve probably thought this at least once: “If rates drop just 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 — and why setting one could be the smartest move you make.

What’s a Strike Rate?

Your strike rate is the exact interest rate that makes refinancing worth it for you. It’s your personal green light — a clear number based on your goals, not just a guess or a gut feeling.

At Clarity Home Lending, we help you calculate it by looking at:

Your current mortgage rate
How long you plan to stay in your home
The cost of refinancing
The potential savings or benefits

Once you set your strike rate, our team will monitor the market for you. When rates hit (or dip below) your number, we’ll reach out — so you don’t have to watch the news every day or worry about missing your window.

Why People Refinance (and Why Timing Matters)

Knowing your strike rate helps you be ready when the timing is right. Depending on your goals, refinancing could help you:

Lower your interest rate: Bought when rates were higher? A lower rate could reduce your monthly payment* or shorten your loan term.
Lower your rate and get cash: A cash-out refinance lets you tap into your home equity while also locking in a better rate.
Just get cash: If you love your current low rate, a second lien or Home Equity Line of Credit (HELOC) can give you access to funds without changing your original loan terms.

Is It Ever Smart to Refinance at a Higher Rate?

It might seem odd, but refinancing at a higher rate can still make sense sometimes:

Debt consolidation: If you’re carrying high-interest debt (like credit cards or personal loans), refinancing could simplify your finances and lower your total monthly payments, even if your mortgage rate increases.
Lower monthly payment: If your loan balance has dropped significantly, refinancing into a longer term could give you some breathing room in your monthly budget.*
Tap into equity without changing your mortgage: If your current mortgage rate is still a keeper, a second lien or HELOC can help you access cash while leaving your original terms untouched.

Remember: refinancing isn’t just about chasing the lowest rate. It’s about making your mortgage work for you.

Know Your Break-Even Point

Your break-even point is the time it takes for your savings from refinancing to cover the costs of the new loan.

For example: If refinancing costs $5,000 and you save $200 a month, you’ll break even in about 25 months.**After that, the savings are yours to keep.

If you’re thinking about using a cash-out refinance for debt consolidation, the math gets a little more complex — but don’t worry. Our loan officers are pros at running the numbers with you.

You Don’t Have to Watch the Market — We’ll Do It for You

At Clarity Home Lending, we stay on top of the market every day. When you tell us your strike rate, we’ll track interest rates for you and reach out the moment the time is right.

No guesswork. No stressing. Just clarity and confidence.

Want to Find Your Strike Rate?

Our team is here to help you figure it out, walk you through your refinancing options, and build a plan that fits your goals — whether you’re ready to move now or just want to be prepared.

Reach out to Clarity Home Lending today. Let’s make sure your mortgage is working as hard as you are.