My mortgage rate is already low. Should I brefinance my mortgage/b b.../b
Interest rate alone is not the only consideration. How far into your current loan are you? How much will it cost you to refi? How much will you save per month as a result and how long will it take to recapture the costs? How long do you expect to own the property? You could wind up paying more in total interest even though the new loan has a lower “rate.”
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When mortgage rates are dropping, many people get caught up in the frenzy and find themselves refinancing every six months. If you already have a low mortgage rate, remember that refinancing does cost money. If the current mortgage rate offered is around 2% lower than your current mortgage loan rate, it is probably a good idea to refinance. If the mortgage payment for a proposed 15 year mortgage loan will be the same as your current 30 year mortgage loan, then this would also be another good reason to refinance.
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