Should I refinance?
When should I refinance?
Many factors need to be addressed to properly decide.
A general rule of thumb if you plan to own your property for five years or more...
$125,000. divided by your mortgage amount.
Example 1: mortgage balance $250,000.
$125,000./$250,000. = .5
This means your new interest rate would have to be lower by more than one half of one percent to refinance.
Example 2: mortgage balance $62,500.
$125,000./$62,500. = 2.0
This means your new interest rate would have to be lower by two percent or more to refinance.