When Should You Refinance? The Best Time To Refinance! Why and When?
Although every situation is different, I would recommend refinancing your mortgage if:
Current Interest rates are at least 1 percent lower than your existing rate.
You plan on staying in your home for another 5 years (give or take).
One of the best reasons to refinance is to lower the interest rate on your existing loan.
Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate By at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.