Lately the interest rates for the best borrowers have dipped below 6%. I have a 6.875% interest rate. Is it in my best interst to refinance?
It doesn't matter if you are seeking Oregon Home Loans, California Home Loan Mortgage Rates or rates from anywhere in the country, you need to be saving over 1% on your mortgage in order to benefit from a refinance.
Having said that, one other critical factor is that your loan amount should be over $200,000. If it is less than that you should wait until the new rate is 1.25% below your present interest rate.
An easy way to calculate if a refinance is in your best interest is to calculate the monthly savings against the cost of the loan. It's a good rule of thumb to have the lower monthly payment offset the cost of the loan within two years. This way after a couple of years you will be realizing real savings.