Quote:
Originally posted by Frowning Budah
I understand the general rule is you have to shave at least 2 points off your interest rate to make refinancing a good deal. Is that still correct?
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Not at all. If you have a high loan amount, like say a few hundred thousand, then only a half point could make a differnce. It also matters how long you are going to be holding the note and how many years you want your new note. Also the total closeing costs of the new loan compared to how much it will save you a month will determine how long you have to hold the note till you break even. Assumming closing costs are around 3000 and and you are saving 200 a month it would take you 15 months to break even, if you hold the note longer then that you are saving money.
Sorry if I am stepping on whoever started this threads toes, i just thought I would throw my .02 in. I have been an LO now for about 2 years in Oklahoma.