Mortgage Refinancing – Counting the Costs

Mortgage refinancing means paying off your existing mortgage with a new loan, using the same property as collateral. The amount you’ll save by refinancing will vary depending upon current interest rates, refinancing costs and tax consequences.
Mortgage refinancing makes sense if Interest rates have dropped more than two points since you got your original mortgage, or if you want to change from an adjustable-rate to a fixed-rate loan to avoid future interest hikes.
As to the costs of mortgage refinancing; expect to pay between three and six percent of the mortgage, plus any prepayment penalties you might incur by paying off the existing loan. Below are some of the fees and charges you are most likely to encounter. Costs vary widely from state to state and loa View the rest of this article