We all love a low mortgage rate. And for good reason—it means less interest paid over time and, ideally, more room in your budget. So, when Steve came to Metrum Community Credit Union for help managing his credit card debt, he was clear about one thing: he didn’t want to touch his mortgage.
“I’ve got a great rate—why would I give that up?” he told his Metrum loan officer.
At first glance, it made sense. Steve had a relatively small balance left on his mortgage at a low 3.99% rate. But what Steve didn’t realize is that he was paying far more each month on high-interest credit card bills than he was saving by keeping that low-rate mortgage intact.
When Steve and his lender crunched the numbers together, the picture changed—dramatically.
By refinancing his current mortgage and rolling in over $77,000 in credit card balances, Steve consolidated his debt into one manageable payment. His new 20-year mortgage came with a slightly higher rate of 5.25%, but the result? His total monthly payments dropped by nearly $3,900.
“I couldn’t believe how much I was spending every month until we added it all up,” Steve shared. “This refinance didn’t just save me money—it gave me breathing room.”
When Does It Make Sense to Refinance—Even If You Have a Low Rate?
Steve’s story is not unique. Right now, many homeowners are hesitant to refinance because they’re holding on to historically low mortgage rates. But sometimes, it’s not just about the rate—it’s about the total financial picture.
Here are a few times when refinancing—despite a low existing rate—might make good financial sense:
✅ You’re juggling high-interest debt. Credit cards and personal loans often carry rates three to four times higher than mortgage rates. Consolidating that debt into your mortgage can significantly lower your total monthly payments.
✅ You need breathing room in your budget. If your monthly payments are stretching your paycheck thin, refinancing can reduce financial stress and help you regain control.
✅ You’re planning long-term. Even with a higher mortgage rate, the overall savings in monthly payments can be redirected toward retirement savings, an emergency fund, or future financial goals.
✅ You’re not making a dent in your debt. If you’re only making minimum payments on high-interest debt, a refinance can help you actually pay off your balances and get out of the cycle.
As Steve put it, “I’m so glad I trusted the process. Now I can focus on building savings instead of just getting by.”
At Metrum Credit Union, we’re not here to talk you into anything—we’re here to have your back and help you understand your options. When you see the full picture, the best choice isn’t always the one you expected.
Let’s take a look at your numbers together. You might be surprised by what you could save.
📞 Call: 303-770-4468 | 📱Text: 303-770-4468 | 📧Email: loans@metrumcu.org