Good afternoon Bigger Pockets Fam! I currently own one rental property at this time and have owned it for about 18 months now. My lender recently contacted me and suggested that I refinance my current mortgage in order to lock in a lower interest rate. My original and current interest rate is 4.375%. My lender claims he can lock me in at 3.25% if I choose to refinance.
I am completely new to the refinancing concept and am looking for any advice on this situation. I have been doing some of my own research and am aware that closing costs are involved with any refinancing. I guess what I am trying to gauge is if this move is worth it or not. Too soon to refinance (18 months in) Not big enough decrease in interest rate to go through with it? Or is this a no-brainer for the seasoned, experienced investor? Lots of question marks regarding this particular situation.
I do indeed trust my lender, who is suggesting that I refinance- but I wanted to reach out and hear from some more experienced investors who have refinanced mortgages in the past or who have refinanced for this specific reason recently (lower interest rate) before I pull the trigger.
Any feedback would be much much appreciated! Thanks!
I forgot to add that this is a long-term buy and hold property. I plan on owning this property for 30+ years