THE 2% RULE

The "2% Rule" states that you should never refinance your mortgage unless your new mortgage rate is at least 2% lower than your existing home loan’s rate. That no longer applies. Deciding to refinance a mortgage should be done on a cost/savings basis.
Evaluating your refinancing options tells you how long it will take to recoup your expenses and makes it easier to recognize and avoid junk fees. How do figure out how long it will take to recoup your expenses when refinancing?
1. Figure out what your new monthly payment will be using a basic home mortgage refinance calculator.
2. Subtract your new lower payment from your old payment and you’ve got your monthly savings .
3. Total up all of your closing costs including any loan origination fees you’re paying the person arranging your new mortgage.
4. Divide this total by your savings and you’ve got the number of months it will take you to recoup your expenses from taking out a new mortgage loan.