The following article is a summary from the book, “Realtor for Life,” written by Duane Duggan.
When interest rates drop, you might wonder whether or not it makes any sense to refinance. Unfortunately, there are many different “rules of thumb” being directed to the public to answer the question, “When is the right time to refinance?”
One of these “rules of thumb” says that if your current mortgage loan is less than two years old, you should not refinance. Generally, this thought comes from the fact that you have just paid closing costs and when you refinance, there will be another set of closing costs.
Another common “rule” used to determine the feasibility of refinancing is that there should be at least a 2% spread between the old interest…