When to refinance into a better rate

[Luka Jozic]

Hi everyone, I currently own 1 property locked in at 6.375% interest rate and currently being quoted around 7.5% for my next deal here soon hopefully. These are both SFH. I plan to hold these properties for a long time like 5-10 years or more. If the rates do go down as expected in the next couple years, at what point would it make sense to refinance? I haven't been in the game long enough to know the trends that well and Im not quite sure at what rate it would be good to do it. Obviously I don't wanna do it too early but I also don't wanna wait too long and risk them going back up.

[Jason Taken]

Quote from @Luka Jozic:

Hi everyone, I currently own 1 property locked in at 6.375% interest rate and currently being quoted around 7.5% for my next deal here soon hopefully. These are both SFH. I plan to hold these properties for a long time like 5-10 years or more. If the rates do go down as expected in the next couple years, at what point would it make sense to refinance? I haven't been in the game long enough to know the trends that well and Im not quite sure at what rate it would be good to do it. Obviously I don't wanna do it too early but I also don't wanna wait too long and risk them going back up.

 7.5% is still a really good historic rate. Refinance probably doesn't make a lot of sense absent substantial appreciation or a substantial rate drop. I wouldn't even say a certain %...but something that makes the costs of the refinance worth it.