Worth it to Refinance?

posted 3 years ago in Home
Post # 3
11668 posts
Sugar Beekeeper
  • Wedding: November 1999

@ajillity81:  we refinanced from 6.5% to 4% and it made an $800 difference in our monthly payment.

Post # 4
917 posts
Busy bee
  • Wedding: July 2013

I think the general rule I’ve heard is around 2%.

Post # 5
738 posts
Busy bee
  • Wedding: August 2009

Just depends on your situation – i.e. cost to refinance, savings you will realize, how long you plan to stay in your home, etc.


We recently refinanced after almost 2 years in our home.  We went down from 4.875 to 3.375.  We shaved 3 years off of the term of our loan and are saving $100 per month.  For us, that was worth it.

Post # 6
2460 posts
Buzzing bee
  • Wedding: November 2013

Make sure that the amount of the new payments is enough of a difference to cover any refinancing costs. Sometimes banks will waive fees if you refinance with them for a longer term but not always.

Usually around 2-2.5% is good enough to refinance.

Post # 7
10453 posts
Sugar Beekeeper
  • Wedding: January 2011

In Canada, a broker will sit down with you and help you figure out your penalty and how much you’ll save by refinancing to see if it’s worth it for free.  I don’t know if they will do this in other countries.

Post # 8
787 posts
Busy bee
  • Wedding: September 2011

We refinanced in Dec and went from a 5% to a 3.375%.  We also from a 30yr to a 15yr loan, and our payments only increased about $60 a month to cut our loan length in half.

Post # 9
4893 posts
Honey bee
  • Wedding: July 2012

If you save at least $100/month, then it’s worth it.


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