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Refinance After Rates Fall 2 Percent?
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.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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