Is Your Mortgage Still a Good Fit? A Mid-Year Mortgage Review Guide

When a client bought her home in 2020, she locked in what felt like a dream rate—just over 3% on a 30-year fixed mortgage. Fast forward to today, and she’s wondering if that mortgage is still the best fit for her life. She's not alone.

Whether you bought your home years ago or just moved in, reviewing your mortgage annually is one of the smartest financial habits you can build. In a world where mortgage rates, home values, and personal goals shift constantly, taking a fresh look at your loan can lead to real savings—and better alignment with your financial future.

Where Mortgage Rates Stand Now (July 2025)

As of this month, the average 30-year fixed mortgage rate in the U.S. is around 6.67%, while the 15-year fixed sits closer to 5.8%. Rates have steadily declined over the past five weeks, down from a peak of nearly 7.8% in late 2023.

While today’s rates might feel high compared to the pandemic-era lows (remember 2021’s sub-3% rates?), they’re still below the long-term historical average of about 7.7%. For some homeowners, that means refinancing is back on the table—especially if your current rate is closer to those recent highs.

Source: https://www.bankrate.com/mortgages/historical-mortgage-rates/

Why a Mortgage Review Matters

Think of your mortgage as more than a monthly bill—it’s a key part of your financial plan. And like any major financial tool, it deserves regular attention.

Here’s what to focus on when reviewing your mortgage:

1. Compare Your Current Rate to Today’s Market

If you took out your mortgage in the past two years when rates were near their peak, you may be paying more than necessary. Even a 0.5% rate reduction through refinancing may make a meaningful difference in monthly payments and long-term interest costs.

Don’t assume you need to drop several points to make it worthwhile. The key is calculating your break-even point—how long it takes for the monthly savings to outweigh the costs of refinancing.

2. Look at Home Equity and Property Value

Many homeowners have seen their home values rise significantly in recent years. That means you might have more equity than you realize—and that opens up options.

• You may be able to remove private mortgage insurance (PMI).

• If needed, you could consider a home equity line of credit (HELOC) or a cash-out refinance to fund renovations, education, or consolidate higher-interest debt.

Just be sure to weigh the long-term impact on your mortgage balance and tax situation.

3. Does Your Mortgage Still Fit Your Life?

Life changes fast. A promotion, a new baby, or a shift in your goals can all impact how your mortgage fits into your financial picture.

Ask yourself:

• Could I afford a shorter loan term to save on interest?

• Is my monthly payment still comfortable?

• Should I start making extra principal payments to pay off the loan faster?

  
  

And if you're carrying other debt—or trying to boost savings for retirement or college—it might be time to rethink your mortgage payment strategy.

4. Don’t Forget the Extras: Escrow, Insurance, and Taxes

Your escrow account, which holds funds for property taxes and homeowners insurance, can sneak up on you. If property values have increased, your taxes may have too—leading to payment increases.

It’s also worth shopping your homeowners insurance annually. You may find better coverage or lower premiums, especially if you've made improvements or bundled policies (but don't shop on price alone; customer service counts too)

5. Considering a Refinance? Know What to Expect

Refinancing isn’t always the right move—but when it is, the savings can be substantial.

• Check your credit score and debt-to-income ratio—these affect your refinancing options.

• Shop around for rates and fees from multiple lenders.

• Ask your financial planner to help you model different refinance scenarios to find your best-fit solution.

The Bottom Line

Your mortgage isn’t something to set and forget. With interest rates shifting, home equity growing, and life goals evolving, mid-year is an ideal time to take a fresh look.

Whether you're thinking about refinancing, accelerating your payoff, or just confirming that your mortgage still supports your broader financial picture, a quick review today could lead to meaningful savings—and greater peace of mind down the road.

Curious whether your current mortgage still makes sense? Let’s talk.  We can help you review your options, run the numbers, and decide whether staying the course—or making a change—makes the most sense for your goals.