To Refinance or Not?

[PiscesMama24]

Hi Mamas,

So, FIL's house has FINALLY been transferred into my husband's name as a one time gift (so no penalties). DH and I are considering refinancing in hopes that we can get a better interest rate, but I'm wondering when the best time would be to do so? Does anyone have any insight? Should we wait a bit longer or try to do it before the election?

TIA Mamas!

[Emmeline II]

The best time (so I've heard) is to refinance when you will reduce the interest rate by at least a point and you will have the house long enough to recoup the closing costs.

[Mulvah]

I felt compelled to respond because I am a planner, nearly to a fault. I have learned that there is no best time for everyone on nearly anything. What I mean by that is, what if you have other expenses when the market is at its absolute best? Do you not refi because of that? Or, do you refi now when the rates are great and you are in a great position to do so? (rhetorical)

What I would do is utilize a calculator to estimate how much you save and how long it will take you to start saving on refinancing. You can also find out rates on refinancing in your area and whether it would be wise to do so now. Good luck!