When Does Refinancing Make Sense in New York?
Refinancing in New York involves paying closing costs of approximately 1.5% 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 New York's current average rate of 6.76%, 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 $6,750, you break even in 34 months (2.8 years). If you plan to stay in yourNew York home longer than that, refinancing is likely beneficial.