Like many, I’m considering a refinance my home, just because rates are low and I want to save money on interest for the term of the loan. I have not done this before and want to make sure I make a fiscally sound decision.
So what’s the equation to figure out how many months before I break even if I’m current at 3.5% interest for a 30 year, I’m moving to a 2.75% or a 2 7/8% for a 30 year, closing costs are $3000 on a $300,000 balance rolled to a new loan? Nothing added to the principal except potential nominal interest. No PMI. No points.
Current monthly breakdown: Principal: $793 Interest: $892 Escrow: $573
Original loan: $412,000 Estimated value: $465,000
How many months before I break even? Even better, what’s the equation so I can shop around adjusting closing costs and rates?
Thanks for saving me the effort! I know plenty of you do this for a living and might save me from a rookie mistake.
Submitted October 14, 2020 at 09:11PM by NoHinAmherst https://ift.tt/33YA14g
