Rates Rose 0.25%: Should You Refinance?

After the Federal Reserve raised its benchmark rate by 0.25% and signaled another possible hike before year-end, homeowners should review their financing strategy carefully. If your existing mortgage rate is in the 3%–4% range, a cash-out refinance may replace low-cost first-mortgage debt with a significantly higher rate. A HELOC or home equity loan may let you access equity while keeping your current mortgage intact. Borrowers with strong credit and a combined loan-to-value ratio of 70% or less may see rates around 7%–8%, though pricing varies by lender, qualifications, fees, and loan terms. Compare the total cost and monthly payment with a licensed mortgage professional before deciding.