Whether you’re a first-time homeowner or have done it all before, buying a new home is an exciting time with a lot to get done. What if you’re still settling into the neighborhood and mortgage interest rates drop lower than your current rate? Refinancing your mortgage loan could potentially help you save on interest and lower your monthly mortgage payments.
While there are many great reasons to take out a new loan, there is such a thing as refinancing too soon. To find out if the timing is right to refinance, first, calculate closing costs and fees and how much it can change your payment. Most importantly, figure out how long it will take for you to break-even.
The answers to these frequently asked questions will help guide when you can refinance and weigh the pros and cons of refinancing quickly after purchasing a home.