If you are a homeowner who was lucky enough to buy when mortgage rates were low, you may have no interest in refinancing your present loan. But perhaps you bought your home when rates were higher. Perhaps you have an adjustable-rate loan and would like to obtain different terms. Or want to draw on the equity built up in your home to get cash for a major purchase or for your children's education.
A general rule of thumb – refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate. This figure is generally accepted as a safe margin when balancing the costs of refinancing a mortgage against the savings.
To learn more, visit our Refinancing Tips and FAQ |
