Been crunching numbers lately and I'm kinda stuck. Bought my house about two years ago, and interest rates were decent but not amazing (around 4.2%). Now, I've been hearing from friends and family that refinancing could help me pay off the mortgage faster and save a bunch in the long run. But here's the thing—I'm not sure if it's too early to refinance or if there's some kind of sweet spot timeline-wise.
I mean, I get the basic idea: refinance at a lower rate, shorten the loan term, and boom, save money. But is there like a minimum amount of time you should wait before refinancing makes sense? Or is it more about how much equity you've built up? I've heard some people say wait at least three years, others say it doesn't matter as long as the math checks out.
Also, I'm wondering about fees and closing costs. I know refinancing isn't free (sadly), so how do you guys figure out if it's worth it? Do you just look at monthly savings versus upfront costs, or is there something else I'm missing here?
Honestly, math was never my strongest subject, lol. So if anyone has experience with refinancing early in their mortgage, I'd love to hear how it worked out for you. Did you regret doing it too soon or wish you'd done it even earlier?
