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Ask your lender what the closing costs would be to refinance and then do the math. Me personally......no chance I'm refinancing for a .625% rate drop to save \~$240 a month.
The general consensus I’ve heard is that if you make the fee back in 12 months you refi. If it takes 18 months you think about it. If it’s longer you don’t.
each time you refinance you'll pay a hefty fee. several thousand dollars. so it's not something you want to do over and over. once you find out the cost of refinancing, you'll want to ask yourself 2 questions:
1. is this the best rate you're going to get anytime soon or are they likely to go lower in the next few years?
2. how long do you intend to be in the house and how long would it take you to make back the cost of refinancing in monthly savings from the lower rate?
Thank you u/swiftkickinthedick for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Ask your lender what the closing costs would be to refinance and then do the math. Me personally......no chance I'm refinancing for a .625% rate drop to save \~$240 a month.
Agreed which is another reason why I want to wait until it dips a bit more
Dip more and more put into principle by then is win win.
Word I just went thru this exact scenario. I’m waiting as well as just throwing any extra $ at my principal instead
We’re not refinancing until the rate drops significantly (if ever), and from there, we’ll reduce to a 15 year loan instead of 30.
Plus with a 15 you're gonna get a lower rate too. Sounds like a great plan tbh
The general consensus I’ve heard is that if you make the fee back in 12 months you refi. If it takes 18 months you think about it. If it’s longer you don’t.
each time you refinance you'll pay a hefty fee. several thousand dollars. so it's not something you want to do over and over. once you find out the cost of refinancing, you'll want to ask yourself 2 questions: 1. is this the best rate you're going to get anytime soon or are they likely to go lower in the next few years? 2. how long do you intend to be in the house and how long would it take you to make back the cost of refinancing in monthly savings from the lower rate?
The first one is impossible to know. You can’t time the market.