The ideal time to refinance a house depends on several key factors:

• When mortgage interest rates drop significantly below your current mortgage rate, refinancing can lower your monthly payments and total interest paid over the loan life.
• If your credit score has improved since you took out your mortgage, you may qualify for better rates and terms.
• When you want to change your loan term—either shortening it to pay less interest overall or lengthening it to reduce monthly payments.
• When you have built enough home equity (generally 20% or more), you might refinance to access cash (cash-out refinance) or eliminate private mortgage insurance.
• If you want to remove mortgage insurance by switching from certain government-backed loans to conventional loans.
• If you want to switch loan types, such as from an adjustable-rate mortgage (ARM) to a fixed-rate loan, for more payment stability.

A general rule of thumb is refinancing makes sense if you can reduce your mortgage interest rate by at least 1% and intend to stay in the home beyond the "break-even point" where savings outweigh refinancing costs. However, your short- and long-term financial goals are crucial in the decision. If refinancing primarily helps reduce financial stress or supports a significant cash need, it might be worth considering. In summary, refinance your house when current rates are low compared to your existing rate, your credit situation is better, you want to adjust your loan term, or you have specific financial goals like accessing equity or removing mortgage insurance. The timing should fit your personal circumstances and plans for staying in the home.