If you're like me, you're looking at rates now and trying to compare your current mortgage with what it could be if you:
A. Refinance with a new rate
B.Purchase a new home and move up
C.Purchase an investment property
A simple tool to is available on www.StephanieJacques.com to help compare your principle and interest payments. Remember, you'll have to add to that monthly payment the following figures:
1. Your Homeowner's insurance premium (divide by 12 to arrive at a monthly figure).
2. Your property taxes ( also divide by 12 for a monthly figure, but only if you escrow in your taxes and do not pay them seperately.
For me, if I refinance 1% less than my current rate, the difference is $79/month, assuming I never change the current principle balance (meaning I don't "cash out", or raise the principle amount to finance in extra project money or money I would use elsewhere.)
Good luck! I'll be watching the rates along with you!