2006-12-30 14:36:15 · 8 answers · asked by sirjinx73 1 in Business & Finance ➔ Renting & Real Estate
2-3 years....
2006-12-30 14:37:57 · answer #1 · answered by Incognito 6 · 0⤊ 0⤋
Whenever you want.
It all depends on what your goals are. Since the most common goal is to save the most amount of money overall, then that is what I will describe:
1. First you take what you are paying now. Let's say it is $1,500
2. Then you look at what your new payment will be. Let's say it is $1150.00.
3. Then you have to ask yourself how long you plan on keeping your home. Let's say it is 5 years.
4. Then you find out how much the loan is going to cost you...Let's say $3500.00
5. Next, you subtract your new payment ($1150) from your old payment ($1500) to get $350 in monthly savings
6. Then you divide your cost ($3500) from your monthly savings ($350) and you get 10 months. This is called your breakeven point.
7. Since your breakeven point comes before you plan on selling your home the monthly savings becomes pure profit after ten months.
8. Last, calculate all the money you're saving. $350 multiplied by 50 months of pure profit equals $17,500!
Basically there is no good or bad time that anyone can tell you to refinance. It is all about when it makes financial sense to you.
If you need help with this and want me to give you or someone you know some advice please feel free to send me an email and we can talk further.
2007-01-03 05:15:49 · answer #2 · answered by kevingeorgecampbell 2 · 0⤊ 0⤋
You can refinance anytime. The question is what is your interest rate and payment right now and how much equity do you have in your home? How long do you plan to keep the home?
2006-12-30 14:39:32 · answer #3 · answered by staceydian 2 · 0⤊ 0⤋
It all depends on the closing costs and the decrease in interest rates. Do the math and see what you payback is vs the closing costs and then take your savings. If you plan on staying more than two years it will probalby make sense if your interest rate drop is more than 1.5%. If you plan on staying a shorter period of time, It will probably not make sense.
2006-12-30 14:41:39 · answer #4 · answered by Jim M 2 · 0⤊ 0⤋
It depends on what your needs and wants may be. Perhaps you had a gift of equity you want to tap into or want a lower interest rate. Do you have a prepayment penalty? is it small? I would be happy to recommend a loan officer to you.
2006-12-31 01:42:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
About 6 months to a year....Refinancing is definitely the way to go if you want a lower interest rate or cash out, feel free to email me a msjaybutler@yahoo.com
2006-12-30 15:14:10 · answer #6 · answered by MadameJazzy 4 · 0⤊ 0⤋
As soon as the refi makes financial sense.
2006-12-30 14:38:27 · answer #7 · answered by feanor 7 · 0⤊ 0⤋
A year or longer
2006-12-30 14:39:41 · answer #8 · answered by Marina 3 · 0⤊ 0⤋