Your home loan rate has 2 elements you need to be aware of

Your "price" of your home loan is the rate plus any lender fees for that rate. The rule of thumb is the higher the rate, the lower the lender fee and vice versa.

As an example, a rate of 4% could have lender fees of several thousand dollars, while a rate of 4.5% could have zero lender fees.  The 4% rate of course would have a lower monthly payment. But is it worth it to pay lender fees to get that lower rate? That depends on what makes sense for you, based on your unique situation--and the potential for future rate increases or drops.

You see, taking the lower rate, and the lower monthly payment by paying upfront lender fees will typically take many months or even years of monthly payment savings to reach your "break-even" point.  In most cases that break-even point is somewhere around 5 years, although it could be longer- or shorter depending on current lender rate policies.

If you refi to a lower rate or sell within that time frame, you will not recoup the upfront lender fee cost through monthly payment savings.  On the other hand if you keep your current rate for 5-6 years or longer you will start saving money.

The important thing to know is most peole do not keep their current home loan longer than about 3 years, even if they don't sell their home. They refinance. Home loan rates cycle up and down, hitting peaks and lows every 3 years or so--not a hard and fast rule -but typical. How far they cycle downward--and your unique qualifying criteria, would determine if a refi might save you money in the future.

For example, your unique qualifying factors --at a particluar point in time-- determine your "loan price". Here is a graphic that better explains this:

It's always best to consult with an experienced loan officer, one who can explain all your options in a clear, concise way, thus allowing you to make the best decision for you. Please reach out anytime with home loan questions--always happy to answer yours!