Lower interest rates, shorter terms, extra cash – switching to a different loan can offer many benefits depending on which option you choose. But will the costs of refinancing make the transition worthwhile?
Regardless of your financial situation, you should always add closing costs into your refinancing bottom line. These costs vary from state to state and can include:
With a “no closing cost” loan, it is possible to fold these expenses into the mortgage itself. But be aware that you may pay a higher interest rate in exchange for this option, if available.