'Date the Rate' Strategy Risks: Need 0.75% Rate Drop for Positive Refi Outcomes

Reported 1 day ago

A new study from Neighbors Bank reveals that homeowners aiming to refinance using the 'date the rate' strategy should expect at least a 0.75% drop in mortgage rates to see financial benefits. Smaller rate reductions, such as 0.25% or 0.50%, are unlikely to cover refinancing costs like closing fees, meaning borrowers could spend years just to break even. Additionally, refinancers with shorter loan terms may benefit sooner, but where you live and local costs also play a significant role in the refinancing equation.

Source: YAHOO

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