Went through this exact thing last year. Thought refinancing would save me a ton, but after crunching numbers with closing costs and fees... wasn't worth it. Definitely pays to run the math yourself before jumping in.
"Definitely pays to run the math yourself before jumping in."
Yeah, that's the truth. I've seen a lot of folks jump into refinancing thinking it's a guaranteed win, but once you factor in those closing costs and fees, the savings can evaporate pretty quick. I looked into it myself recently—rates seemed tempting—but after doing some digging, I realized I'd have to stay put for at least 5-6 years just to break even. Not sure I'm ready to commit that long.
Curious if anyone's had better luck with a VA streamline refinance (IRRRL)? Supposedly fewer hoops and lower fees, but I'm always skeptical when something sounds too good to be true...
You're spot-on about running the numbers yourself. I looked into an IRRRL last year, and while the paperwork was definitely simpler, the savings weren't as dramatic as advertised. Sure, fewer fees upfront, but the slightly higher interest rate they offered meant my monthly savings were minimal. Ended up deciding it wasn't worth the hassle unless I planned to stay put long-term. Always gotta read that fine print...
Did you check if the slightly higher rate was due to the lender you chose or just the IRRRL program itself? I've heard some lenders pad their rates a bit to offset the lower upfront fees, so shopping around can make a difference. Ran into something similar myself a couple years back—first lender quoted me a rate that barely moved the needle, but when I got a second opinion, the numbers looked a lot better. Still wasn't a huge savings, but enough to make it worthwhile at the time.
Also, did you factor in how long you plan to stay in your current place? Sometimes even a small monthly saving can add up if you're not planning to move anytime soon. But yeah, totally agree about the fine print... lenders love hiding those little details.
"Sometimes even a small monthly saving can add up if you're not planning to move anytime soon."
Exactly my thinking. When I bought my first place, I almost skipped refinancing because the savings seemed tiny. But after crunching numbers over 5-10 years... it definitely added up. Did you find lenders flexible on closing costs?
