The refinancing rule of thumb says that you should consider refinancing your home when you can get an interest rate that is at least one percentage point lower than your current rate. Another school of thought is if you can get an interest rate at least 2% less than the current rate. However, neither of these is accurate per se. Truth is, there is no one size fits all when it comes to refinancing. Every two individuals and their loan scenarios are different and each should be analyzed by you and your loan officer on a case by case basis. Your future plans, financial objectives, number of years you are planning to remain in your home, and type of loan program you are moving out of and moving into all play into the decision on whether to refinance. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
