Costs & FeesQuestion 56
Is It Worth Refinancing My Houston Rental to Save Half a Percent?
On a $200,000 loan, 0.5% lower rate saves ~$60/month. If closing costs are $5,000, the break-even is about 7 years. Worth it only if you'll hold that long.
On a $200,000 loan, 0.5% lower rate saves ~$60/month. If closing costs are $5,000, the break-even is about 7 years. Worth it only if you'll hold that long.
- What to know: Understand every dollar involved in refinancing to make sure the math works for your Houston rental.
- Houston context: Houston closing costs are competitive with other major Texas markets. Title insurance rates are state-regulated, providing some cost predictability.
- Action step: Negotiate lender fees, shop title companies, and calculate your break-even point before committing to any refinance.
Bottom Line
The true cost of refinancing goes beyond the rate — factor in all closing costs and calculate how long it takes to recoup them through lower payments.