When should I refinance? Rates are so low!

 I recently did a seminar in New Jersey about Hoboken real estate and a question that frequently came up was "When do I refinance?" 

That's kind of a vague question but my simple answer is that if you cannot save at least two percentage points, it is recommended by myself that you don't even consider refinancing.  First off, if you don't save that much in the rate, your closing costs on the refinance will essentially negate most of your savings. 

Also you need to consider how long you plan on staying in the home. Prior to putting your file into underwriting, you should have your lender or mortgage broker send you a Good Faith Estimate.  Compare your new payment to your current payment.  Multiply it by how many months you think you will be in the house.  If you have no plans to even consider moving, you may be making a good choice into refinancing.

So when looking for a solid investment decision which ultimately your home is, make sure your home refinance is well thought out.  Consult New Jersey real estate professionals when looking in NJ.