What fees are involved in refinancing?
Find out about closing fees, appraisal fees and other fees. These will be helpful in determining if it makes sense for you to refinance. Generally speaking, your cost to refinance divided by your monthly savings will yield the number of months it will take for you to break even on the refinance. • What are the current interest rates? Generally speaking, you may want to consider refinancing if you can get an interest rate at least 2% below your original loan rate. However, depending on the size of your mortgage, that’s not always the case and it may save you money to refinance even if the rate is as little as a quarter percent below your original rate. You may also want to refinance if you have an adjustable-rate loan, are concerned about future rate increases and want to switch to a fixed-rate loan – even if the new rate is the same or slightly higher. You can estimate your monthly payments and interest charges using the mortgage calculators at mafcumortgage.org. Our mortgage experts a
