a 1% savings on a refinance is actually excellent. the money you are saving is in interest that is why you realize such a savings not becasue you are paying less money towards your principal, just less in interest. The basic guidline to refinance or not is will you recover your closing costs in one years time and if the new rate is between 3/4 and 1% lower than the old one. I'm a realtor and see all kinds of financial situations, and in this case you are ahead of the game, keep up the good work. and if you are going to be saving a good amount of money a month apply a bit extra to the principal. that will bring the time of your mortgage down. 1 extra payment per year can shave about 6 years off of a 30 year mortgage |
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