Question: Should I wait until rates fall 2 percent before refinancing?

Answer: NO. The 2-percent myth is a fable that will cost you big money.

Instead, consider this approach.

Ask how much it will cost up-front to refinance.

Calculate how much you will save each month.

Divide your monthly savings into your up-front costs.

Example: Say it costs $3,000 to refinance but you can save $60 a month. That means it will take 50 months ($3,000 / $60) to recover your "investment." If you are going to stay at the property 50 months or more, consider refinancing.