Back to FAQ
How do I know when it is a good time to refinance?
The old rule of
thumb on refinancing held that the interest rate would need to decline by
at least 2% for the refinancing to be worthwhile. A more accurate
measurement would be to consider the savings in monthly payment, the costs
of the loan transaction, and the term of the new loan compared to the old
term. The key is to determine whether the benefits of payment savings
and/or term reduction exceeds the costs of the transaction.