The costs of refinancing have decreased greatly in the past several years. Using no cost out of pocket loans, for example, borrowers can save thousands of dollars up front. Also, closing costs can usually be included in the new mortgage loan amount so that no cash is required to execute a refinance.

Paying Points for a lower interest rate is an excellent idea if you are staying in the property more than 4 years.

Deciding whether to refinance usually involves totaling the costs of refinancingand subtracting those expenses from the total savings expected. It is also importantto determine how many months it will take to pay back the costs of refinancingfrom the savings that will accrue.

The savings that can be obtained from refinancing depend directly on the answersto the above questions. It is best to answer these questions with the helpof a qualified mortgage professionals.