If you are considering refinancing your mortgage you might wonder if refinancing is the right decision for you. There are a number of factors to consider when answering this question; refinancing a mortgage costs money, your lender will charge you fees during the process. In order to make certain you are not losing money during the process you need to take this into consideration with your present mortgage.
Here is what you need to consider:
How long will you live in your home? If you plan on moving within two or three years you may never recoup your expenses from refinancing the mortgage. The longer you stay on the property, the more you will save from refinancing.
Does your present mortgage have a prepayment penalty? If your current loan charges a penalty for refinancing you could lose any savings to that penalty. Review your loan contract carefully to see if it includes this penalty.
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My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
