This can be accomplished in a variety of ways, but the most common way is to take the monthly savings you generate by refinancing your home and divide it into the capital idea closing costs required to complete the refinance. If you can breakeven in 2 to 3 years, this in most cases is normal although in some instances taking longer to recuperate still very well make sense if you plan to keep the loan.
Alternatively, another option is to take the interest savings that you’re going to generate by completing a refinance in relationship to the current interest you’ll pay on your loan moving forward.
Not sure how to calculate the numbers? Call Scott at 707-217-4000.
Or get started with a complementary mortgage rate quote to see how the numbers play out.