I just called a loan officer and asked him for a GFE for refinancing my house.
Here is the current situation:
My house mortgage total: $230,000
I have paid it for 2 years at 4.5% for 15 years
Monthly payment: $2290 (insurance and tax included)
He offers me 3.25% for 15 years, closing cost is $3100
New monthly payment is about $1950 (insurance and tax included)
I can save $250 a month to refinance my house.
If I plan to keep my house for 1 year, then the closing cost for refinance will pay off.
And, I plan to stay at my house for at least 2 years.
Did I miss anything?
Should I refinance my house?
I'm not a mathematical genius but by my count you'll save $340/mo if you refi unless the closing costs are rolled into the loan payment somehow to come up with a $250 a month savings.