Mortgage rates dropping again - time to rethink my loan?

On the home-equity-loan question, refinancing doesn’t automatically prevent one later, but it can change the terms you’re offered. The new mortgage balance, appraisal, lien position, and your debt-to-income calculation can all affect how much usable equity remains and whether a lender will offer a favorable HELOC or second-mortgage rate.

If renovations are a realistic possibility, compare that future borrowing option before closing the refinance. A lower first-mortgage payment may not be a win if the new loan uses more of the available equity or makes the later financing materially more expensive.