You’ve been watching mortgage rates fluctuate over the past year, and you’re wondering: Should I refinance my Asheville home? With rates hovering between 6-7%, the decision isn’t as obvious as it was during the 3% days of 2020-2021. But that doesn’t mean refinancing isn’t worth it—you just need to know what to look for.
With median home values sitting around $512,000 in the city and $480,000 in Buncombe County, many Asheville homeowners can save thousands of dollars each year with a lower rate. If you are curious about refinancing with GoPrime Mortgage in West Asheville, reach out to us for a discussion based on your unique situation.
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The 5 Best Reasons to Refinance in Asheville
Lower Your Interest Rate
This is the classic reason people refinance. The general rule of thumb is that refinancing typically makes financial sense when you can lower your rate by 0.5% to 1% or more.
Let’s say you bought your home in 2023 with a 7.5% interest rate on a 30-year loan. If you can refinance today at 6.5% on another 30-year term, you’d save somewhere around $269 per month on a $400,000 loan—that’s $3,228 annually. Many Asheville homeowners who purchased during the 2022-2023 rate spike might now qualify for better terms as rates have stabilized and their credit profiles have strengthened.
Switch from Adjustable-Rate to Fixed-Rate
If you currently have an ARM (adjustable-rate mortgage) that’s approaching its adjustment period, refinancing to a fixed-rate loan can provide payment stability and peace of mind. This is especially popular among vacation home owners in the mountains who want predictable payments in an uncertain rate environment.
Cash-Out Refinance for Home Improvements
With Asheville home values appreciating over the past several years, many homeowners are sitting on substantial equity. A cash-out refinance allows you to tap into that equity while potentially securing better loan terms.
Popular uses for cash-out refinancing in Western North Carolina include adding a deck to enjoy those mountain views, upgrading kitchens and bathrooms, installing solar panels or energy-efficient systems, or making resilient improvements to your home. Keep in mind that cash-out refinance rates typically run 0.25-0.5% higher than standard rate-and-term refinances.
Shorten Your Loan Term
Switching from a 30-year mortgage to a 15-year mortgage lets you build equity faster and save massive amounts on total interest paid over the life of the loan. This strategy works best when your income has increased since you purchased the home or when you want to pay off your mortgage before retirement.
Here’s a quick example: On a $400,000 loan at 6.5%, your monthly payment on a 30-year term would be about $2,528. Switching to a 15-year term at 6% (shorter terms often get slightly better rates) would increase your monthly payment to roughly $3,375—an extra $847 per month. However, you’d save over $200,000 in total interest and own your home free and clear in half the time.
Consolidate High-Interest Debt
If you’re carrying high-interest credit card debt (18-24% APR), a cash-out refinance can help you consolidate that debt into your mortgage at a much lower rate—currently around 6-7%. However, this strategy only makes sense if you’re committed to not running up those credit cards again.
Here’s the math: $30,000 in credit card debt at 20% costs you $6,000 annually in interest alone. Roll that into a 30-year cash-out refinance at 6.5%, and you’re paying $1,950 in interest during the first year—a savings of $4,050 per year. Just remember that you’re converting unsecured debt into secured debt backed by your home, so financial discipline is essential.
When Refinancing Doesn’t Make Sense
Our team prioritizes honesty, including about when refinancing might not be your best move, to help you make an informed decision. Here are some scenarios when we would advise you to hold off:
You’re planning to move soon. Refinancing comes with closing costs (typically 1-2% of the loan amount), and you need time to recoup those expenses through your monthly savings. If you’re planning to sell within 2-3 years, the numbers may not make sense.
You’re far into your current mortgage. Most of your mortgage interest is paid during the early years of the loan. If you’re 20 years into a 30-year mortgage, resetting to a new 30-year loan means you’ll be paying interest on that balance for another three decades—even if your monthly payment drops, you’ll likely pay more in total interest.
Your credit score has dropped. If your credit has taken a hit since you bought your home, you might not qualify for the better rates that would make refinancing worthwhile. The good news is you can work on improving your credit first. We’ve created a guide to boosting your credit score before taking this step.
You’d significantly extend your payoff date. Watch out for this trap: Let’s say you have 25 years remaining on your current loan and you refinance into a new 30-year mortgage. Yes, your monthly payment might drop, but you’re adding five extra years of payments—and likely paying substantially more in total interest over the life of the loan.
The Break-Even Analysis: Do the Math
Understanding your break-even point is the key to making a smart refinancing decision. Refinancing a mortgage comes with closing costs, typically 1-2% of your loan amount. On a $400,000 loan, expect to pay between $4,000 and $8,000 in closing costs.
Your break-even point is when your monthly savings equal the amount you paid in closing costs. The formula is simple: Closing Costs ÷ Monthly Savings = Months to Break Even.
Example: Rate-and-Term Refinance
Current loan: $400,000 at 7.5% = $2,797/month
New loan: $400,000 at 6.5% = $2,528/month
Monthly savings: $269
Closing costs: $5,000
Break-even:18 months (about 1.5 years)
In this scenario, if you plan to stay in your home for at least three years, refinancing makes financial sense. After that point, every month is pure savings.
Our free mortgage calculator can help you run preliminary numbers, but the best way to know if refinancing makes sense is to have a conversation with our team. We’ll run the numbers for your specific situation and show you exactly what your break-even point looks like.
“Zack with GoPrime was absolutely incredible. From start to finish, he made sure to explain all the complicated aspects of [the] lending process in a way that was very easy to understand. During the process I had an issue with my employer and Zack and his team worked diligently with me to continue the application during my transition to a new employer. Ultimately with his help we were able to close MUCH sooner than expected. 100/10 definitely recommend. Look no further than GoPrime.”
—Matthew H., 5-Star Google Review
Special Refinance Scenarios for Asheville Homeowners
Mountain Property Considerations
If you own a home outside city limits or in one of our mountain communities, you may face unique appraisal challenges. Properties with septic systems, well water, or located in rural areas require specialized knowledge from both lenders and appraisers. This is where working with a local Asheville mortgage lender makes a real difference—we understand Western North Carolina properties inside and out.
Removing PMI Through Refinance
If you purchased your home with less than 20% down, you’re likely paying private mortgage insurance (PMI). With Asheville’s strong home value appreciation over recent years, many homeowners now have 20% or more equity in their homes. Refinancing can eliminate PMI, which can save you $100-300+ per month depending on your loan size.
Important note: If you’ve reached 20% equity (80% loan-to-value), you may be able to request PMI removal from your current lender without refinancing. We can help you understand which route makes more financial sense.
VA Streamline Refinance (IRRRL)
For military families in Asheville, the VA Interest Rate Reduction Refinance Loan offers a streamlined path to lower your rate with less documentation and typically no appraisal required. This can be one of the fastest and most cost-effective refinance options available.
Current Asheville Refinance Market
Entering 2026, refinance rates are generally ranging between 6-7% depending on your credit score, loan type, and loan-to-value ratio. While these rates are higher than the historic lows of 2020-2021, they’re still reasonable compared to the long-term historical average.
Refinancing isn’t only about snagging a lower interest rate. You can also save if you tap equity for home improvements, switch from an adjustable-rate mortgage to a fixed-rate loan, consolidate debt, or shorten your loan term.
It’s important to note that rates can vary significantly between lenders—sometimes by as much as 0.5-1%. Shopping around or working with an independent mortgage lender who has access to multiple loan programs can make a substantial difference in your final rate.
Home values in Asheville have remained relatively stable, which means most homeowners are in a strong equity position, and appraisals are generally coming in at expected values.
Should You Wait for Rates to Drop?
This is one of the most common questions we hear. While some analysts predict rates may ease slightly as we move through 2026, waiting for the “perfect” rate can cost you money in the meantime. If refinancing makes mathematical sense today based on your break-even analysis, the savings you capture now often outweigh the potential benefit of waiting for rates that may or may not materialize.
Remember: You can always refinance again if rates drop significantly. There’s no rule against refinancing multiple times if the numbers work in your favor each time.
Why Choose a Local Asheville Lender for Refinancing
Working with a local Asheville mortgage lender offers distinct advantages when refinancing. We understand the unique aspects of Western North Carolina properties—from mountain homes with septic systems and well water to understanding local flood zones and property challenges that out-of-state lenders might flag incorrectly.
You’ll also get personalized service with direct communication rather than navigating a call center. As active members of the Asheville business community, we have relationships with local appraisers, title companies, and real estate professionals that help your refinance move efficiently. Our in-house underwriting often allows us to close faster than national lenders.
“Zack with GoPrime is squarely one of the most friendly passionate loan officers in our area with a true commitment to supporting folks in their home buying journey. I have appreciated the education around home buying, his connection to the community, and his positive presence with the Asheville Chamber leading networking experiences for local business leaders.”
—Jessica M., 5-Star Google Review
Let’s Run the Numbers Together
The decision to refinance your Asheville home isn’t one-size-fits-all. It depends on your current rate, your equity position, how long you plan to stay in your home, your financial goals, and what’s happening in your life right now.
We’re here to help you figure out if refinancing makes sense for your situation. Call, click, or come in for a no-pressure consultation where we’ll run your specific numbers and show you exactly what refinancing would look like. You can reach us at (828) 348-1907, send us a message via our website, or stop by our West Asheville mortgage office at 862 Haywood Rd, Asheville, NC 28806.
