Quote:
Originally Posted by rattlsnak
Everything I've read, says its not worth it unless it's at least a 1.75 - 2.0% difference in the rate.
|
Not necessarily true. Just figure out your break-even point and then decide how long after that you'll keep the house. You know the approximate cost to refi. Divide that number by the amount your new payment goes down (adding in the one payment you skip when the loan resets) and that tells you how many months it will take to break even. If you want to sell before then, it's a really bad idea to refi, even if it goes down by five points. Once you break even, every month thereafter is pure gravy. So decide how long you'll keep it after that point. One month? Probably not worth it. Three years? Hell yes.