12/19/2023
Interest rates are dropping. So when is it a good time to refinance?
At a 0.25% drop in interest rates gets everyone excited.
At a 0.50% drop it makes sense to refinance if you plan to have the loan for 4+ years.
At 1% below you current interest rate it usually makes sense to refinance.
This is the rule of thumb I use when I get asked this question.