closing costs<\/u><\/a>, and divide it by how much you intend to save each month.\u00a0<\/p>This will give you the total number of months it would take to reach the refinance break-even point.\u00a0<\/p>
Experience shows that if you plan to stay in a home for the long term, and that refinance break-even point is less than 48 months, it would make great financial sense to refinance your mortgage.\u00a0<\/p>
However, if the breakeven period is longer than a reasonable period than what you expect to be in that loan, you might want to reconsider the refinancing option.\u00a0<\/p>
For example, if a lender is refinancing with the cost of $5000 and the monthly savings if you are refinancing is $315, the simple calculation is 5000\/315=15.87.\u00a0<\/p>
This means if you refinance with the lender, the refinance break-even point would be 16 months which is a great option if you are planning to stay in the home for more than 16 months.\u00a0<\/p>
If you are planning to move the home in less than 16 months you might want to reconsider your option for refinancing.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t