With mortgage rates being so low right now, a lot of people are asking the question:
SHOULD I REFINANCE MY MORTGAGE?
Here is a down and dirty mathematical way of looking at it.
Current principal & Interest Payment (without taxes and insurance)
MINUS
New principal & Interest Payment
EQUALS
Monthly Savings
Then take your closing costs and divide that by your monthly savings. This will give you the number of months needed to break even.
Will you stay in your home longer than the number of months it will take to break even? If so, you are a candidate for a refinance.
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