Refinancing house. I am purchasing a new home and the interest rate is kind of high. How long should I wait before trying to refinance it to get a better rate?

The general rule of thumb is that it takes two percent and five years to break even from a refinance. That means that you should wait until you can drop the interest rate a minimum of two percent by refinancing, then it will take about five year’s worth of the interest savings (at the new reduced rate) to break even with the costs of the refinance (loan fees, recording fees, etc).

This entry was posted in Real Estate. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s