You've probably heard from one source or another, usually your drunk ex-college roommate, that you don't refinace unless you can save 2% on your existing mortgage rate.
The old 2 percent rule is just a quick way to judge the financuil sense of refinancing, not a carved in stone law, like don't bite off more than you can chew.
If you can get a 2% reduction in your mortgage rate, that's great, most likely you can pay for the cost of the new loan with the saviings in under 2 years.
But, what if you have noj plans of selling in the next 2 years? Suppose your wife has 5 years left on a contractual obligation. We can never know the future and the best laid plans can get tossed to the wind pretty quickly in this crazy world.
Use the best information you can obtain, ponder the possible problems and make an informed decision on that new low interest mortgage.
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