Let’s talk… mortgage rates!
We refinanced our mortgage last October after owning our house for a year. We saved over 1pct on our rate and we have to stay in our house for a year to break even.
Here are some things to consider when determining whether to refi.
- First, how much is it going to cost you? Some mortgage companies will give you a deal to stay with them so call and ask. You can then compare what they are offering vs what’s out there in the market by going to bankrate.com.
- Second, how much are you going to save each month? This is real money that’s going to increase your cash flow. The economy is opening up and I’m sure there are better ways to spend your money than on mortgage interest.
- Third, calculate how many months it will take for you to break even by taking your cost to close and dividing by your monthly savings. You can then make a decision whether you’re going to stay in your house that long and if it makes sense to refi.
Lastly, I don’t expect rates to stay this low forever so time is of the essence.
The content in this material was created for educational and informational purposes only and is not intended as an investment advice.
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
