I’m considering refinancing.  I have been told that I must get a rate which is at least 2% lower than my current rate to justify the expense of refinancing.

Nobody seems to know where this mysterious 2% rule of thumb came from.  I have never found anyone who can actually explain why one needs to save 2%.  The facts are that most of this decision goes back to what your specific objectives are for refinancing,  You should carefully review the available options.  Review how much the refinancing transaction will cost you.  Despite the fact that you can add it “back into the mortgage” it is still costing you something.  You also need to carefully review what this potential transaction may mean to you in terms of your monthly budget and cash flow.  Only after examining these variables is it possible to evaluate whether the refinance makes sense for you.

If you are considering refinancing, let us put you in touch with the experts who can help you determine if it makes sense for you. Call us at 215-576-8666 or email us at admin@consultantsforlife.com!