Consumption and Real Estate
Is it worth refinancing if interest rates are down 1 percent?
Question : Is it worth refinancing if interest rates are down 1 percent?
New 30 year mortgage last year, interest rates are 1 percent lower, which reduces my monthly payment. But, there are closing costs – again. We would re-coop the closing costs after 2 years, but what do we save over the term of the loan?
refinancing rates
Best answer:
Answer by sassy25
No it needs to be at least two points unless you can find a lender willing to waive the closing costs.
Call your current lender and ask.
Yes, if you can recoup the closing costs after 2 years, that would be worth it. You will save thousands over the term of the loan. Here is a great calculator that you can use to figure out savings a number of different ways by comparing both loans http://bit.ly/4uQPY2