Money Flying
Home > Dumb With Refinancing > When

- Ask Me
- My Money Plan
- Banking Right
- Buying A Home
- Buying Cars
- Credit Cards
- Financial Advisors?
- Insurance
- Investing Right
- Loans Done Right
- Money Scams
- Paying For College
- Paying Off Debt
- Refinancing
- Retirement
- Salaries
- Social Security
- Taxes Done Right
- Your Money

When is it time to refinance your home mortgage?

Timing is key...

This is something we always ask ourselves. You can't crunch a calculator all the time. It is really good to have this worked out ahead of time. Just say, it would be worth time to take advantage of a 1.5% drop in rate. Currently, that would save me over $350 a month. That a nice car payment.

I came across a few good offline articles on Refi-ing. Here are the general rules of thumb I have found based on the scenario that fits you:

If your loan is over $250,000 and you have more than 20 years left on it:

You can usually make good on a rate that 0.75% lower than your current terms.

If your loan is under $250,000 and you have more than 20 years left on it:

You can usually make good on a rate that 1.25% lower than your current terms.

If your loan is under $200,000 and you have more than 15 years left on it:

You can usually make good on a rate that 1.5% lower than your current terms. These are just indicators of what you should be looking for, if you see dips in the interest rates. If you have a $300,000 loan and you have 25 years left, 3/4 of a point of interest may be worth your time.

Before you ever think of Refi-ing, always do the math. Also never forget about closing costs. Never ask a mortgage lender if it is a good time to refinance your mortgage, for them it is always a good time to finance.

No one has commented this - be first!

Post your comment

You can use following HTML tags: <a><br><strong><b><em><i><blockquote><pre><code><img><ul><ol><li><del>

Confirmation code:



 
About Me | Contact | Privacy Policy | Sites I Like

Because we all can be smarter with our money.