When to Refinance
Good Reasons:
- Rate drop of 0.75%+ from your current rate
- Improve credit score significantly
- Remove PMI
- Switch from ARM to fixed
- Cash out for major expense
- Planning to move soon (<3 years)
- Extending loan term significantly
- Just to lower monthly payment
Refinancing Costs
Typical costs: 2-5% of loan amount
| Cost | Range |
|---|---|
| Application fee | $75-$500 |
| Appraisal | $300-$700 |
| Title search | $200-$400 |
| Origination fee | 0.5-1.5% |
| Points (optional) | 0-2% |