I need some refinance advice:
When I bought my home in East San Diego two years ago, I had marginal credit and had to pay a higher rate. Now my credit score is way up and I’m thinking of refinancing for a lower rate. Do you agree with the ‘2% rule’ that says you should refi when rates are 2% under your current rate?”
***ANSWER:
Perhaps 20 years ago. But with today’s low/no-cost loans, refinancing can make sense with less than a 1% difference. It depends on the closing costs, whether you have a prepayment penalty, and how long you plan to keep the home.
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