We’re in Southern California. We bought a house 3 years ago at interest rate 7.3%. We have the chance to refinance to 5.375% with about $20K in closing costs/ points with our current lender. Our new loan amount will be $566,500.
We will save $750 on the monthly mortgage payment. Of that, $600 will be going towards the principal (before only $400 was going to the principal). The goal for this is to get a low monthly to one day rent it (within the next 2 years).
What would you do?
Posted by travelbakeNlift
2 Comments
No brainer, lock it in.
Those closing costs are high! What is their broker fee? Id shop around but yes refi when your ROI is about 2 years makes sense if you’ll stay there longer.