Refinancing my home

[Christopher Aguilera]

Good morning BP,

I'm currently trying to Refinance my home and the lender is letting me know that I can get a lower interest rate than 3.5% but my closing cost are going to be about 2K more.

They said it will drop to about a 3.25% for the additional 2k.

Which option is better:

Stay at 3.5% interest and save 2k.

Or add 2k to the loan closing cost and get the lower interest rate at 3.25.

Please advise, thank you!

[Ramon Flores]

@Christopher Aguilera To answer your question, it largely depends on how long you are planning on staying on the property. If you are selling within a year then it doesn't make sense to refinance. I would look up refinance calculators online and punch in all the numbers, they show you at what year you break even and how much you will save. Best of luck!