Question 1

When is refinancing worth it?

Accepted Answer

Refinancing is worth it when the new rate is at least 0.5-1% lower, you plan to keep the property long enough to cover fees, and your credit has improved.

Question 2

What fees are due when refinancing?

Accepted Answer

Expect early repayment fees (up to 1%), notary fees, new loan fees, and possibly property appraisal. Total about 1-3% of the loan amount.

Question 3

What is the break-even point?

Accepted Answer

The break-even point is when monthly savings from the new loan exceed the refinancing fees paid. After this point, you are actually saving money.

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Refinancing is not worth it