Share my world of refinance
5%. While a savings of 0. 5% might not seem significant, refinancing at that rate would lower her payment by about $600 per year on the $150,000 loan. Before you can decide if mortgage refinancing makes sense, you have to compare the savings to the costs of refinancing. In the example above, if you had to pay $3,000 (roughly 2% of the total loan) to refinance then it would take 5 years ($3000 / $600 = 5) to cover the cost of refinancing.