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www.thetruthaboutmortgage.com/the-refinance-rule-of-thumb

If you're considering refinancing your mortgage, you may have searched for the “ refinance rule of thumb” to help you make your decision. Of course, there isn't a single refinance rule of thumb. There are numerous ones. And before we dive into them, it should be noted that rules don't tend to work universally because there ...

www.investopedia.com/ask/answers/09/refinancing-mortgage.asp

The typical rule of thumb is that if you can reduce your current interest rate by 0.75% to 1% or higher, then it might make sense to consider a refinancing move. The first step is to calculate your monthly savings should you do the refinance. For example, suppose you have a 30-year mortgage loan for $200,000. When you ...

www.investopedia.com/articles/pf/05/033005.asp

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb was that it was worth the money to refinance if you could reduce your interest rate by at least 2%. Today, many lenders say 1% savings is enough of an incentive to refinance. Reducing your interest rate not ...

www.fhahandbook.com/blog/when-to-refinance-rule-of-thumb

When does it make sense to refinance my mortgage loan? Is there some kind of rule of thumb to go by? That depends on your reasons for refinancing. If you're doing it primarily to save money, you can use the rule-of-thumb explained below. The basic formula is: Closing costs ÷ monthly savings = break even point.

www.mtgprofessor.com/A%20-%20Refinance/when_does_refinancing_really_pay.htm

But beware! The break-even period is not the cost of the new loan divided by the reduction in the monthly mortgage payment. Many loan officers use this rule of thumb, which completely ignores how rapidly you pay off the new loan as opposed to the old one. Borrowers following this rule would never refinance into a shorter ...

www.homebuyinginstitute.com/mortgage-refinance-9.php

Many homeowners believe there is some magic rule-of-thumb for refinancing, such as the often-quoted two percent rule. I still see this ... This refinance rule of thumb doesn't consider: (A) how much your closing costs are, (B) what your tax rate is, (C) how long you're going to stay in the home, and other important factors.

abcnews.go.com/Business/Retirement/mortgage-refinancing-rule-5s/story?id=10649069

May 17, 2010 ... 1.Your new interest rate should be at least .5 percentage points lower than your current rate. The old rule of thumb was that you should refinance if you could get a rate that was 1 to 2 points lower than your current one. Well, the rules have changed, because rates in recent years have been at historical lows, ...

www.bankrate.com/finance/mortgages/old-mortgage-refinance-rule-is-outdated.aspx

Sep 20, 2010 ... The old rule of thumb that you shouldn't refinance unless the new mortgage rate is at least 1 percent less than the old interest rate isn't the best yardstick for determining whether you should refinance. The decision to refinance to capture a lower interest rate should be based on the after-tax interest savings, ...

www.doughroller.net/mortgages/when-to-refinance-your-mortgage

Apr 12, 2011 ... Lowering the interest rate on a mortgage is the primary reason most homeowners refinance their home loan. Back in the day, the rule of thumb was to refi a mortgage when the rate had gone down by at least 1%. Today, a rule of thumb is not enough to make a decision. Instead, divide the cost of refinancing ...