When Does Refinancing Make Sense?

I get this question every week. The honest answer: it depends on your goals and how long you'll stay in the home.

Know your break-even

Divide your closing costs by your monthly savings. That's how many months it takes to come out ahead. If you'll stay longer than that, a refinance may make sense.

It's not only about rate

People refinance to shorten their term, remove mortgage insurance, switch from an adjustable to a fixed rate, or take cash out for improvements or debt.

Watch the term

Restarting a 30-year loan can lower your payment but increase total interest. I'll show you both side by side, in writing.