The two-percent rule is sometimes now as important as the time needed to break even on refinancing for some homeowners. For example, if it costs $3,000 to refinance a house, and the monthly mortgage payment is lowered by $90, it would take almost three years to regain the cost of refinancing your property North Florida. If the information for your old loan is still current, the lender may be willing to waive many of the fees. You may be able to roll the closing costs of a refinance loan into the new note. In other words, you don’t avoid the closing costs, but instead pay them back over time along with the rest of the loan. If you consider this option, be sure to figure the possible savings vs. the expense of paying off a higher principle balance.

Refinancing usually lengthens the time it takes to pay off your home so be sure you look at all the factors before signing and finalizing your new mortgage. If you are three years into a thirty year mortgage and then refinance with a new thirty-year loan, you will end up paying for your house over thirty-three years. If, however, the saving are considerable enough, you could still pay much less over the long term with a new loan.