Category
How much of a rate change do I need to justify refinancing?
Answer
As with any financial decision, it all depends on your unique individual situation and your financial goals, but we can help you make those decisions. The easiest way is to do a calculation of the difference in your current mortgage payment and the payment you can get by doing a refinance. That tells you how much you will save each month. But to make the calculation more accurate and meaningful we will then estimate the costs of doing the refinance – your closing costs. By dividing the closing costs by your estimated savings we can figure out how many months it will take for you to break even and start realizing net savings. So by crunching the numbers and looking at the savings you can make a wise, informed decision – and potentially start banking significant savings through a strategic refinance.
