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But according to personal finance expert Suze Orman, its not as simple as jumping at alower rate.
This adds time and interest back into your loan, potentially costing more in the long run.
Then you refinance for another 30 years.
What is it going to cost you to totally refinance this house?
And what will the savings be … between your new mortgage rate and your old?
Then you divide that number, the difference, into the cost of refinancing, she said.
Its not a one-size-fits-all decision.
Her advice is clear, however, dont refinance just because rates drop slightly.
Title insurance and search fees can cost another $500 to $800.
Overall, refinancing can be a powerful financial tool but only if its done with careful planning.
As Orman reminded listeners, that means doing your homework before you sign.
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