You’ve all heard about the current low interest rates and how refinancing sounds like a good idea right now. So when is the right time to do a VA Streamline or an IRRRL?

Though a low interest rate is important, don’t get too caught up with the size of the interest rate. It is important to realize that no matter how attractive the interest rate is, there are other aspects to keep in mind. If you focus on all three while considering your financing options, you will save yourself a lot of time and money.

While the interest rate is important, something more important to focus on is the question, “How much will this cost me?” You must consider what doing a refinance will cost you today.

Once you know how much your new loan will cost you today, you can figure out how long it will take you to save that amount of money over the life of the loan. Using the savings and dividing it by the total cost, you can find a very valuable number called the “recoup period.”

You never want to do any refinancing unless the recoup period is less than 24 months or two years.

Keeping all of these important financing aspects in mind will help you make sure your refinance is a truly beneficial decision.

Creekside Mortgage, Inc is ready to help you refinance your VA loan today. 800.920.5420