reduce: When Thinking about Refinancing Your Mortgage, make sure you know the Cost vs Savings!
- 09/29/11 03:09 AM
Over time, I have heard many explanations on what someone thinks is the benefit of refinancing their mortgage. Some examples are “it doesn’t make sense unless i get a rate 2% lower”, “I don’t care as long as the payment is less”, etc. The real key to a successful refinancing is actually knowing the cost vs the savings of your new loan.
When going from a 30yr mortgage to a new 30yr mortgage(15yr to 15yr, etc) you want to divide the cost of the new loan by your monthly savings. So let’s say on your $200k loan you have … (4 comments)
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