Should You Refinance Your New York Apartment in 2023?

Okay, here's the deal: if you snagged a sweet mortgage deal in 2020 or 2021, now might not be the best time to refinance. Rates are still higher than last year, so only a few people are applying for new mortgages or refinancing.

Sure, refinancing can lower your monthly payment, but it doesn't always save you on interest in the long run. You could end up extending your loan and paying more in interest overall.

Before you go hunting for lenders, use a mortgage calculator to see how much you could save. But watch out for closing costs and the breakeven point. If you plan to sell soon after refinancing, those costs can eat into your savings.

The current mortgage rates for a 30-year fixed loan are around 7%, almost double last year's rate. And a 15-year fixed-rate mortgage is at 6.5%, way up from 2.4% in January 2022. If you like living on the edge, adjustable-rate mortgages (ARMs) might be more your style, averaging at 6.04% for a 5/1 ARM.

Honestly, only a small group of borrowers have a good reason to refinance since their rates are still way lower than what's out there now. If you bought your home a few years ago with higher rates, refinancing could be worth it, especially if your credit score has improved. Or maybe you want to switch from an unpredictable ARM to a stable fixed-rate mortgage. It's all about securing your rate or getting an even better one for your financial future.

So, should you refinance in 2023? It depends on your situation. Do the math, consider the costs, and make a smart move.