Consolidating loan mortgage
A more reliable way is to calculate your break-even point – that is, how long will it take your cumulative savings from a lower rate to exceed the fees you paid to refinance?If you can reach your break-even point in 3-4 years, you'll likely benefit from refinancing.A refinance mortgage rate calculator can be a useful tool here.Many of them are set up to help figure your break-even point automatically.While many borrowers refinance mortgage loans, it's still something that a lot of people are unfamiliar with. Any kind of loan can be refinanced, including mortgages, auto loans, business loans, etc.
So a home equity loan or home equity line of credit (HELOC) are mortgages as well. But most of the time, a "mortgage refinance," means refinancing the primary lien on your home.You often find these on "no closing cost" mortgages where the lender charged a higher rate to make up for waiving the closing fees, or on loans to homebuyers with weak credit.When refinancing to a lower mortgage rate, the key factor is whether you'll save money.There's no real "season" for refinancing, so there's no need to wait for any particular time of year to refinance. Most lenders are reluctant to consider an immediate refinance right after you took out a mortgage; they usually like to see that at least one year has passed. A more common concern is that some mortgages have that some mortgages have prepayment penalties if you refinance them or otherwise pay them off within 3-5 years.That doesn't prevent you from refinancing but does increase the cost.