HELPFUL INFORMATION THAT WILL MAKE YOUR DECISION EASIER
The conventional wisdom is that the interest rate should
be lowered by 2% or more to recoup closing costs within
two years. However, creative and less costly new refinance
programs mean that you can benefit even if the rate is only
lowered by around 1%.
The best principle to follow is to refinance your home if
you can pay back the closing costs in less time than you
will be living in that home. If your principal is high,
even a small reduction in the interest rate will pay off
in long-term savings. more
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