Refinance•7 min read
When Does Refinancing Make Sense?
Refinancing isn't just about a lower rate. Discover the break-even math that makes a refinance truly profitable.
Should you refinance? It's the multi-thousand dollar question. The answer lies in the 'break-even point' between your closing costs and monthly savings.
The 1% Rule of Thumb
Historically, if you can drop your interest rate by at least 1%, a refinance is almost always worth considering.
Cash-Out Refinancing
Beyond just lowering your rate, a refinance can also allow you to tap into your home's equity to pay off high-interest debt or fund improvements.
How much are closing costs?
Typically, refinance closing costs range from 2% to 6% of the loan amount. Make sure your monthly savings will cover these costs within 2-3 years.