Hello,
I bought my first home in April of 2010. My APR is 5%. I have no trouble making payments. I usually make a bit extra. I constantly see advertisements and stuff about lower and super low interest rates, so I looked at my bank (USAA). They are offering a 4.06% APR.
So I'm wondering, is there a general rule on when it makes sense to refinance? I am totally knew to home ownership and just figuring out a lot of stuff, and I'm guessing that for awhile (many years) it doesnt make sense because the fees and closing costs of a refi will get rid of any savings.
Thoughts on this? I dont have a need and I plan on staying in my home for a long time, but if it saves me a few hundred a month I'm open to the possibility. If it helps, according to my appraisal for my last mortgage, I'm no longer underwater.
I bought my first home in April of 2010. My APR is 5%. I have no trouble making payments. I usually make a bit extra. I constantly see advertisements and stuff about lower and super low interest rates, so I looked at my bank (USAA). They are offering a 4.06% APR.
So I'm wondering, is there a general rule on when it makes sense to refinance? I am totally knew to home ownership and just figuring out a lot of stuff, and I'm guessing that for awhile (many years) it doesnt make sense because the fees and closing costs of a refi will get rid of any savings.
Thoughts on this? I dont have a need and I plan on staying in my home for a long time, but if it saves me a few hundred a month I'm open to the possibility. If it helps, according to my appraisal for my last mortgage, I'm no longer underwater.