I hear people say not to refinance a home mortgage unless you lower your rate by at least 1%. This rule of thumb is far too simplified. Why? The fact of relativity, my friend.
I’m not saying I’m on the same level as Albert Einstein, but my staff at Florida Mortgage Firm and I are math nerds who crunch numbers all day, and we know that interest-rate savings is a relative figure. The correct way to analyze if a refinance makes sense is to consider the costs of the loan, and whether you intend to stay in the home for the duration it takes to recoup the savings from the refinance.
Call my team if you have any questions about this.