are you a homeowner?
Refinancing an existing mortgage to lower your interest rate and / or change the term can help lower your monthly payments. A good rule of thumb? If the total closing costs (roughly 3% of the new loan amount) can be made up in your monthly payment savings within the first 12 – 24 months of the new refi, then go for it. Not possible? Let's find another way to save you some money.
Quick example: If your closing costs are $4,800, then your new monthly payment should be at least $200 less than your current monthly mortgage payment. How did we figure that out? $200 x 24 months = $4,800. Ta da!