When to refinance?
So, boston gal posted something about 2.25% interest rates — and it got me wondering at what point does it become worthwhile to refinance the house? What if you’re currently locked into a 3 year no-refinance clause that will cost you about $7,500 to break? I’m sure there is still a point that it becomes worthwhile, though whether or not we could qualify for the rate at which it becomes beneficial is a different story.
Possible or not, it still seems like a good number to know. Looking at the online calculator comparing 7.35% to 2.25% showed savings of about $600/month and that’d make each month much easier on us – but it’d take more than a year of that type of savings to recoup closing and penalty cost. Hmm, guess I should take the time and learn what that number is and what the out of pocket impact would be.
Edited to add: I did get the part that boston gal’s 2.25% rate was hypothetical mortgage rate — it just got me thinking that I don’t know at what rate it is worthwhile to consider refinancing our house and that is something I think responsible home owners should know.