To Refi Or Not

To refi or not to refi.

To refi or not. Refinancing to lower your monthly payment is great unless you re spending more money in the long run. Before you make that call take a moment to learn why there s more about refinancing than just the attractive lower rate. For example if you plan to sell your home and move in the next few years you might not have time to reach the break even point in which case refinancing could cost you more money than it could save you. Take some time to figure out what your total costs would be what your new monthly payments would be and whether or not it s the right decision for you.

Deciding when to refinance is no small decision so don t jump on the refinance band wagon just because other people you know are doing it. Take this step only if you are convinced you can resist the temptation to spend once the refinancing relieves you from debt. Refinancing and paying off your mortgage early can save you serious money but there are a number of circumstances where it just isn t financially responsible to refinance. Moving to an adjustable rate mortgage may not make sense if interest rates are already low by.

Unfortunately refinancing does not bring automatic financial prudence. If you think you could be moving soon it may not make sense to pay thousands of. Refinancing can certainly make sense but it also costs money to refinance a mortgage. That is the question.