7.125% interest rate on a conventional investor loan: When should I try to refi

[Connor Castillo]

Hi all,

With this interest rate, when should I might try to refinance to lock in a lower rate. The home is in Columbia, SC. With the .5 point cut, I think the rates already dropped in anticipation of this happening, but not sure if anyone has further insight into this?

Thanks!

[Eric Veronica]

Much of that depends on your loan size.  If your loan amount if 700k then a rate decrase of .50% - .625% often times makes sense.  

If you are looking at a loan amount of 100k then I wouldn't recommend refinancing unless you are shaving at LEAST a full percent off the loan and likely that wouldnt even be enough.  

Another big factor is which state the property is located.  Refinancing a home in Florida will typically cost 2x-4x more in fees than a property in Indiana.