Despite higher mortgage rates, homeowners can still save by refinancing

• You've got a 30-year mortgage with an interest rate you could reduce by at least three quarters of 1 percentage point through a refinance — like go from 4% down to 3.25% or better. You might meet this criteria if your current mortgage is from mid-2019, when 30-year fixed mortgage rates were over 4%.
• You have a good-to-exceptional credit score of at least 720. If you haven't looked in a while, it's easy today to get a peek at your credit score for free.
• You have at least 20% equity in your home, which means you've paid in 20% or more of the home's current market value.

With mortgage rates on "pause," refinancing is hot again. Refi applications surged 18% in the most recent week, according to the Mortgage Bankers Association.

Why homeowners should move quickly to refinance

Homeowners who can still refinance and reap the savings may not have much time to lock in a desirable rate.

Multiple forecasters expect mortgage rates will keep climbing this year as the economy improves and the Fed starts raising interest rates again, to get a grip on inflation. Officials have signaled that the first rate hike could come in March — two years after the central bank chopped rates nearly to zero.

If you've been on the fence about refinancing and are thinking about making the jump, check rates from several lenders to find the best deal available for your area and for a person with your credit profile.

You may find you're an ace at comparison shopping — which also can help you save on homeowners insurance. Once your policy comes up for renewal, get multiple rate quotes to see if another insurance company offers the same coverage you currently have, but at a lower price.