When Does Refinancing Make Sense in Massachusetts?
Refinancing in Massachusetts involves paying closing costs of approximately 2.2% of your loan balance to obtain a lower interest rate. The general rule: if you can lower your rate by at least 0.75–1%, refinancing is worth exploring. With Massachusetts's current average rate of 6.77%, the savings depend heavily on how far rates drop from your existing loan.
The break-even point is calculated by dividing total closing costs by monthly savings. For example, if refinancing saves you $200/month and costs $12,760, you break even in 64 months (5.3 years). If you plan to stay in yourMassachusetts home longer than that, refinancing is likely beneficial.