Refinancing

If you did this, what was your rule in terms of whether it was worth it or not?

Should we pursue it just b.c the rate is lower, or should we be looking for 1 point, or 2 points lower than we currently have?

Any feedback would be helpful.
Thanks.

Re: Refinancing

How long you plan on being in your home is the main thing.

It was going to take us 3 years to pay back the fees and such but we will be here much longer than that so every month after that it is a literal savings of $400.

Re: Refinancing

You really have to work out the #'s and see if it makes sense for you. How long do you plan on staying in your home? Take that and the cost of closing on the re-fi and see if it is worth it. If you plan on staying in your home and the re-fi rate is at least a point and a half to 2 points lower, then defiantly worth it.

If it's only a point and the closing costs are high, it may not be worth it for you.

In my case, I bought in Oct 07 and the rate was 6.5, now it's going to be 4.75 and since we don't plan on going anywhere anytime soon, it's a no brainer.