Home > Resouce Center
more info ยป
Check the market
closely to determine the available rates and the costs associated with
refinancing. These costs can include items such as an appraisal and other
various fees and points. Then determine what your new payment would be if you
refinanced. You can estimate how long it will take to recover the costs of
refinancing by dividing your closing costs by the difference between your new
and old payments (your monthly savings). However, the ultimate amount you may
save depends on many factors, including your total refinancing costs, whether
you sell your home in the near future, and the effects of refinancing on your
taxes. The old rule of thumb used to be that you shouldn't refinance unless the
new interest rate is at least two percentage points lower. However, many
companies are now offering zero point loans and low-cost refinancing. Therefore,
even if your rate change is less than one percentage point, you may be able to
save some money by refinancing. |
