As a husband-and-wife lending team at Bank of Utah’s newest home loans office in Vernal, we often have the opportunity to sit down with our Uintah Basin neighbors who are feeling the weight of their mortgage and trying to find some breathing room. We’ve noticed that lately, as budgets feel tighter and rates have eased a bit, the core question homeowners have is: “Could refinancing our home help lower our monthly costs?”
That’s the exact question a couple came to our office to ask recently.
They had bought their home in 2021, when mortgage rates had started to climb. They had that original mortgage, then later added a second loan when they needed it. At first, managing both didn't feel like an undue burden. But as time went on, the two payments — with different rates, schedules and due dates — started to feel like one moving piece too many. The second loan carried an even higher rate, and the whole setup had become heavier than they wanted their monthly budget to feel.
As we talked through their numbers, the picture became clearer. Sometimes you don’t realize how much something is costing you until you put everything side by side. In their case, refinancing both loans into one new mortgage, with a better overall rate and term, brought more relief than they expected. Their total monthly payment went down by $300, their schedule got simpler and suddenly there was enough room to finally take care of an important home repair they’d been putting off.
“Refinancing both loans into one new mortgage dropped their monthly payment by $300 and finally gave them room to breathe.”
They left feeling lighter because their mortgage fit their life better.
And that’s the part of their story that stays with us. Rates have been drifting down from where they were a year or two ago, which is why more homeowners are taking another look at their mortgage and asking whether a refinance might make sense. But even with those modest improvements in rates, headlines shift weekly and market predictions rarely stay steady for long.
The real opportunity isn't about chasing the perfect rate dip alone. It comes from reassessing your biggest expense and structuring it in a way that truly supports your budget today.
4 Ways Refinancing Can Realign Your Budget
Depending on what you want to accomplish, a refinance can help you bring your mortgage in line with your current needs. It could help you:
1. Lower Your Monthly Payment: Secure a different rate or adjust your term to create more space in your budget.
2. Accelerate Your Payoff: Choose a shorter term to pay off your home faster and save on interest.
3. Tap Your Equity: Use the equity you’ve built for priorities like a renovation, tuition or consolidating high-interest debt.
4. Consolidate Two Loans: Bring a first mortgage and a second loan (like a HELOC) together into one simpler, more manageable payment.
This consolidation option has been especially helpful for many homeowners in Utah. With home values remaining strong in key areas, bringing two loans together often smooths out month-to-month finances and can free up capital for home updates or repairs.
What Refinancing Really Is — And How to Know Which Type You Need
At its core, refinancing means replacing your current mortgage with a new one. The new loan pays off your existing loan or loans, and you move forward with a fresh rate, term and monthly payment.
Most refinances fall into one of two categories:
Rate-and-Term Refinance: You’re adjusting your interest rate, your term or both to improve your monthly payment, shorten your payoff or simplify your loan.
Cash-Out Refinance: You take advantage of the equity you’ve built by refinancing into a loan that’s larger than your current balance and receiving the difference in cash. This can help fund major home improvements, tuition or strategic debt consolidation.
When a Refinance Might Be Right — and When It Might Not
A refinance can be a powerful tool when it aligns with your goals and today’s market conditions. It may be worth exploring if:
- Your current interest rate is notably higher than what’s available.
- You’re carrying a high-rate second loan or HELOC.
- You want to simplify managing multiple loans into one payment.
- You’ve built strong equity.
- Your credit score has been strengthened.
- You need funds for an important repair or upgrade.
- Your mortgage no longer fits your life today.
However, refinancing isn’t the right move in every situation. It may not make sense if:
- Your current rate is already competitive.
- You plan to move soon.
- You haven’t built enough equity.
- Your credit score has declined.
- The closing costs outweigh the benefits.
A good refinance should either lower your monthly payment, shorten your payoff timeline, simplify your finances or help you access equity for something important. If it doesn’t do at least one of those things, it’s usually better to stay with your current mortgage.
Ready to Run the Numbers? 3 Simple Steps
A refinance feels much more manageable when you break it into a few simple steps.
1. Establish Your Baseline: Gather the details for your existing mortgage or mortgages — interest rate, balance, monthly payment and the remaining years on your term. This gives you a clear foundation for comparison.
2. Assess Your Current Leverage: Consider whether your credit score has improved or you’ve built more equity since purchasing your home. Either can qualify you for stronger refinance terms.
3. Get a Personalized Comparison: We can show side-by-side scenarios comparing your current loan to a potential refinance, including monthly payment differences, payoff timelines and long-term costs. We’ll also calculate your break-even point — the exact month your savings outweigh the cost of refinancing.
Beyond the Headlines: A Quick Note on National Home Loan Conversations
You may have seen conversations about innovative ideas like 50-year mortgages or portable mortgages. These proposals often surface during national discussions about housing affordability and are meant to address the challenges many buyers face.
While it is helpful to know these ideas are being discussed across the industry and gaining attention in headlines, they are not yet widely available and may never become standard offerings.
Our focus remains on helping you find a better fit for your budget right now. We achieve this by reviewing your existing mortgage, assessing the equity you've built, and exploring the well-known refinance programs that are available today to meet your financial goals.
Wondering If a Refinance Might Help You?
If you’re trying to figure out whether a refinance could lighten your monthly budget or make your mortgage easier to manage, we can walk you through the numbers. Simply reach out and talk with us for a clear look at what’s possible so you can make a confident decision for your home and your future.
Our Final Piece of Advice: The mortgage you have today should support the life you are living today. Don't assume your old loan is still the best fit for your current income, credit or equity. Taking the time to assess what is probably your largest monthly expense is always the most valuable financial review you can make.
Kimberly Rojas and Manuel Rojas are a husband-and-wife mortgage team proudly serving Utah homeowners with Bank of Utah since 2024. With decades of combined experience, they help individuals and families purchase, refinance or restructure their home loans with clarity and care. Active in their community, they support local churches, the Senior Center, the Board of Realtors, RISE for individuals with disabilities, and the local food bank. Helping neighbors thrive is at the heart of what they do — from their home to yours.
