If you have been thinking about refinancing. The general rule of thumb when considering if it makes good financial sense to refinance is when a new rate is one point (1%) below the current rate. If this is the case then compute the amount of time it will take to payoff the cost of obtaining a new loan. To determine this divide the total loan costs (obtained from the financial institution) by the monthly savings (the difference between a new payment and the old payment). If the result which represents the number of months it will take to pay off the cost of refinancing through savings is 36 or less refinancing should be considered. Obviously, a homeowner needs to also consider how long they plan to be at their residence to help determine if refinancing will be beneficial. Please contact us if you would like help with this decision.