It’s not always a clear answer. How long you plan to stay in the house is one of the factors. Here is a good article that shows how a refi would work.
There are useful links in the article to calculators to help you find your answer. You can also find the latest refi rates at bankrate for your state. I’ve used bankrate many times over the years to save us money and I trust their information. (I have no affilifation with them.)
With interest rates probably on the rise due to the US credit rating downgrade, it’s worth your time to run the numbers.
Click the title of this post to link to bankrate.
Maggie@SquarePennies says
Good advice, MC. The rates seem to be falling again. The Fed says now it will keep rates at rock bottom levels for 2 years yet. Shopping around still makes a lot of sense.
MoneyCone says
It is always a tough decision but some lenders offer no-cost refinancing. Shop around and always be aware of what the current rates are if you locked in at a less than optimal rate.