Mortgage rates continue to drop and 30-year fixed mortgages are averaging just over 5%. These rates are significantly lower than just a few years ago, so those of you who bought a home in the past are probably hearing a lot of talk about refinancing right now. Refinancing can certainly make sense because a lower interest rate means lower monthly payments, and ultimately a lower total cost. But is the decision to refinance really that simple?
Unfortunately, there's more to a refinance than simply deciding to go ahead with it and get a lower rate. If you aren't careful, you could actually find yourself in a situation where the refinance ends up actually costing you more money. So, find out if your situation makes refinancing a good idea, and if not, learn how you can make a mortgage refinance pay off in the future.