Question 1

When should I refinance my mortgage?

Accepted Answer

Refinance when you can lower your rate by at least 0.5-1%, plan to stay past the break-even point, or want to switch from ARM to fixed-rate.

Question 2

What is the break-even point?

Accepted Answer

The break-even point is when your monthly savings equal your refinancing costs. For example, $3,000 costs / $150 savings = 20 months.

Question 3

How much does refinancing cost?

Accepted Answer

Refinancing typically costs 2-5% of the loan amount, including appraisal, origination fees, title insurance, and closing costs.