By Matthew Marcoux, CFP® / February 1st, 2021
I never thought we would see 30-year home loans touching interest rates in the high 2s, but 2020 was a weird year for all sorts of things.
For many, this seems like a great time to refinance. Afterall, the lower the interest rate, the lower your monthly payment. Before you run to the bank to start the refinance paperwork though, make sure you run the numbers. The refinance process will cost you, and for those who already enjoy an especially low interest rate, adding the refinance costs back into the loan may inhibit a new, even lower interest rate from saving you much money, if any at all.
This is a great opportunity for most homeowners to reduce their monthly mortgage payment. Just remember to do the math before deciding it’s a great opportunity for you.