Mortgage Checkup Calculator
This calculator can help you understand if it makes sense to refinance your current mortgage. Forget the old wives tale about rates needing to be 2% lower before refinancing.
A better rule of thumb is to look at your total mortgage balance and the rate. Divide $125,000 by your loan balance - and that will give you the rate drop you need for a refinance to make sense. If you have a first and a second mortgage - enter both - and the blended rate is the rate to examine - that's the rate you're paying each month.
Keep in mind that you can always try a no closing cost refinance - savings may occur immediately.There are also other reasons to refinance - like locking in an ARM rate to the safety of a fixed rate, or changing to an interest only payments loan.