TIP OF THE DAY: Whether it makes sense to refinance doesn’t depend on when you did it or what the new monthly payment would be. You have to take a look at the whole picture – It’s got to make sense for the long term.
It’s really simple – If you can take the same amount of money you’re spending now on your monthly payment and make it go further by consolidating and paying off some of your other debt into one low interest rate loan, it probably makes sense to do. Especially when whatever you’re paying off has a higher interest rate than your new loan.
Think about it: You’re not taking on new debt necessarily, simply restructuring what you’ve got in a way that makes sense.