In general, mortgage refinance is considered when loan rates go down. How much lower the mortgage rates need to plummet for justifying refinance?
Let’s learn more here about mortgage refinance. Homeowners decide to refinance their loan, so as to reduce their interest rate. It is reported that average homeowner can save minimum $3,000 every year through mortgage refinance.
Consider these aspects to evaluate if low rates justify mortgage refinancing
Therefore, how much lower rates justify mortgage refinancing, is the complex question that still hangs. Better way is to calculate.
Ultimately, you get a breakeven point. Refinancing will make sense, if you wish to stay longer than breakeven point. Remember to concentrate on interest rate and even refinancing cost.
Even when interest rates don’t go down, you will be eligible for low rates, if your credit score improves. Therefore, for attaining the lowest mortgage rates intend to attain credit score higher than 760.