Mortgage refinancing - forget the 2% rule

Many people tell you that you should never refinance your mortgage unless the mortgage rate is lower than what you already pay 2 per cent. Don't forget this rule of mortgage refinancing. The true test of the refinancing mortgage if makes sense for you, this is how long it will take you to retrieve your expenses. Here are several tips to help you decide if mortgage refinancing is right for you.

You can determine if the mortgage refinancing makes sense for your financial situation with a simple calculation. The first thing you need to determine is what will be your total costs of mortgage refinancing. This figure must include all your closing costs and all other costs payable in securing the new mortgage. Then, determine how much you will save with a lower monthly payment. Divide the amount of the new mortgage will cost you the amount that you will save and it will indicate the number of months, it will take to recover your expenses.

For example, if your monthly savings after refinancing mortgage is $ 200 and your closing costs and the total cost of $2,000, you'll be ten months to retrieve your expenses until you go account the savings on the new mortgage loan. That's really all this there is to decide if the mortgage refinancing makes sense for your financial situation. There are of course other reasons to refinance your mortgage even if your monthly payment does not go down. These reasons include a number any other reasons to choose a new lender and mortgage refinancing. You can learn more about your mortgage options, including errors, you must monitor with a free mortgage refinance tutorial.

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