When does it make sense to refinance?

Each scenario is unique. Some people think they have to save 1% or more for it to be worthwhile,
but it is a little more involved than that. First, I want to make sure you
understand, when I refer to closing costs, I am referring to any and all lender
and title fees, not escrows, which are taxes and insurance. Our barometer is 24
months. If we think you can recoup your closing costs in less than 24 months,
we believe the refi is worth doing.  You
can also do refis with no closing costs. The way they work is that the
lender/broker offers a higher rate, therefore, receiving more compensation and
they can use the overage to cover your closing costs.

You need to look at what will be your benefit. If you are looking to save on the monthly debt,
then we use the 24 month barometer. If you are looking to save on interest and
shorten the length of the loan, you need to see what your new payment will be.
The 24 month barometer does not necessarily apply here, because you will most
likely have a higher payment with the shorter loan.

I would ask for
different scenarios, and see what offers you the best net tangible benefit.

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