Is refinancing worth it?
| Component | Current | New | Difference |
|---|---|---|---|
| Principal & Interest | $0 | $0 | $0 |
| Escrow | $0 | $0 | $0 |
| Total Payment | $0 | $0 | $0 |
| Current | New | Difference | |
|---|---|---|---|
| Total Remaining Interest | $0 | $0 | $0 |
| Interest Over Remaining Life | $0 | $0 | $0 |
Refinancing makes sense when:
Consider all these factors together. A lower rate isn't always worth it if the break-even period is too long.
Extending the term (e.g., from 15 to 30 years) can reduce monthly payments but increases total interest paid over the life of the loan.
This strategy works if:
Be cautious - extending the term means you're effectively borrowing money for a longer period at your mortgage rate.
Yes, you can refinance multiple times, but each refinance incurs closing costs and resets your break-even point.
Multiple refinances make sense when:
Each refinance should be evaluated independently for its break-even period and long-term benefits.