Should You Refinance Your Mortgage?
2 Rules of Thumb
No doubt you’ve heard these two rules of thumb, but they aren’t always true!
- Don’t refinance more often than every two years
- There must be at least 2% savings from your previous mortgage rate
Calculate Recapture of Savings
The reality is that if you can refinance for a lower rate and you’ll be in the home long enough to recapture the cost of refinancing, it should be considered. The costs of previous refinancing that haven’t been recaptured by monthly savings may need to be added to the costs of the new refinance, to get a complete picture.
Take a look at the chart that shows the average rates according to Freddie Mac for 2012. They are lower today than they were in January of 2012 and for the ten years before that.
Use the Refinance Analysis Calculator
Refinancing may save you a substantial amount of money, especially if you’re going to be in your home for a long time. It is definitely worth investigating. To get a quick idea of what your savings could be, use this refinancing calculator.
If it makes sense for you, we have excellent mortgage lenders we’ll be happy to recommend.