When to Refinance? Any thought frameworks?

We Refinanced in Dec 2019 to a 30-year loan at 3.75, and Refidesk is saying we can get a 3.25 it looks like. We have a Jumbo Loan so the .50% rate difference is a big monthly saving. I am not sure about the cost though, Refidesk is saying 5,500. If it costs 5,500 then it makes sense to refinance right? It just seems like I refinanced recently. Any train of thoughts around correctly think about this?


Just to follow up on this. Looks like the numbers above are Refidesk initial estimates. Started to get quotes in Refidesk and the rates are much better, so pretty sure it makes sense. Refidesk is saying I will save a couple hundred a month, with breakeven in 1.5 years. Has anyone ever used Refidesk to connect to brokers? The math seems to add up.

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Just talked to a realtor about your question. A jumbo loan is a big one & interest rate of 3.75 down by 0.5% to 3.25%. He said that is a good rate even at 3.75, basically free money, interest rates are going to go up from here on in.But as far as dropping 0.5% is not huge, it would depend on having to ask yourself how long you are going to stay in this house to make it worth while. Also there are closing costs to consider and how much difference in the monthly payments will there be. Would it be more cost effective if you just added money on the principle only each month rather than another refi? If you do that, make sure there is no penalty for early pay off.That way the base line of the loan would decrease and eventually cost you less. It would change your amortization table the loaning institution has worked out for you based on regular payments. The initial years of a mortgage are primarily interest, they want their money up front.

By paying on principle only along with the monthly payment, we reduced our 30 yr mortgage down to 12 years. Our refi after 5 years went down 2%, but the rates were higher then than yours is now.