I purchased my very first home approximately seven months ago at an interest rate of 3.25%. At the time, it was considered a really good rate in my area (Illinois, Will County). Now, everyone's talking about how the rates are hitting "record lows" and the six-month period of when we can refinance is up and now I'm starting to consider refinancing. Right now we have an offer for 2.625% at the usual 30-year fixed rate.
I did a little research and saw that if someone was to refinance, that the new rate should be about .5 to 1% lower. Is it as simple as that? We are barely half a year into our current 30-year loan, so I'm assuming the sooner we take advantage, the better the saving in the long run?
I'm still relatively new to all this, so an "explain like I'm five" version is nice, but not necessary.
Thanks!
Submitted November 27, 2020 at 07:58PM by Brown_Bear_D20 https://ift.tt/2JiRvAr
