With the low interest rates many homeowners are still thinking about refinancing to lower their monthly mortgage payments. While this seems like a great idea, there are some things to consider before you embark on this path. Refinancing is not cheap – have you looked into what it will cost you? How long will you be staying in your current home? If you are moving soon, you most likely won’t recoup the cost of the refinancing. Does your current mortgage have a pre-payment fee? To get the exact costs of refinancing please check with your mortgage banker but I have a short list of some of the costs that you will need to consider.
Refinancing is a wonderful idea with the low interest rates but you do need to find out the costs and see if it is worth your while or not.