by haytham fox
Question by elishayden: How can I find out when mortgage rates are at a level that would make refinancing my condo more affordable?
Answer by chatsplas
There are many online calculators to figure this out
Rule of Thumb is that there needs to be 2 points difference in rate and you must keep home 5-10 years AFTER refinancing for this to make sense
There are COSTS to refi, and it takes time to recoup the costs, BEFORE you start seeing any savings or benefits
Add your own answer in the comments!
There really isn’t a formula as far as if you can get 0.5% better rate it makes it worthwhile. It depends on how much you owe, what your plans are in terms of how long you will live there. If you plan on living there a long time I would say 0.5% of better its worthwhile to refinance because the difference in payments over a long time makes a huge difference, if your going to be in the place 2-3 more years not worth it. If your thinking about doing a refi check out loanhomeonline.com/findamortgage. I used them to do mine, I got 1.5% lower even though I dont plan on staying in my home that long thats such a huge difference I thoguht it was worthwhile.
Contact a loan officer and have them keep you updated on mortgage rates. If you tell them your target rate, they can alert you when it’s available or send you daily rates. I post daily rates and those that choose can opt-in to get daily rates by text.