TIME TO REFINANCE?

January 31, 2008 at 12:00a.m.

TIME TO REFINANCE?

How to decide

Evaluating whether to refinance your mortgage:

Determine your break-even point — the time it takes you to make up in monthly savings what you paid in fees.

Calculate it by dividing your mortgage fees by the monthly savings.

For example, if your fees are $3,000 and your monthly savings are $100, then your break-even point is 30 months.

Decide if you are going to stay in your home past the break-even point. If you are, then you will save money by refinancing.

Source: Bankrate.com