When should you consider refinancing? Â Some people believe they shouldn't refinance more often than once every two years. Some used to say to refinance if your interest rate could drop 2%. Â Really the only determining factors should be will you lower your payments and do you plan to stay in the home long enough to recapture the cost of refinancing?? If so, you should definitely consider refinancing.
Refinancing in the example below would save the homeowner $67.04 per month and they would recapture the cost of refinancing in 3 years and 9 months based on approximately $3,000 of closing costs. Interest rates have actually come down significantly in the past 12 months and even more in the past 24 months.
Click HereÂ to make your own projection on a Refinance Analysis calculator.