Ever heard the old rule of thumb, you should only refinance if your new interest rate is at least two points lower? That may have been true years ago, but with refinancing dropping in cost over the last few years, coupled with the explosing of new programs, it is never the wrong time to see if refinancing is the right move.  Refinancing has a number of benefits that often make it worth the up-front expenditure many times over.

When you refinance, you might be able to lower your interest rate and monthly payment -- significantly. You might also be able to "cash out" some of the built-up equity in your home, which you can use to consolidate debt, improve your home, take a vacation -- whatever.  With lower rates and balances, you might also be able to build up home equity faster with a shorter-term new mortgage.

All these benefits do cost something, though.  When you refinance, you're paying for most of the same things you paid for when you obtained your original mortgage.  These might include settlement costs and other fees, an appraisal, lender's title insurance, underwriting fees, etc....

You might have to pay a penalty if you refinance your previous mortgage too quickly. That depends on the terms of your existing mortgage.  These penalties are illegal in some places, and more often than not when they are there, they will only apply for the first year or two.  That too is part of what I help you figure out.

Speaking of taxes, if you lower your interest rate, naturally you will be lowering the amount of mortgage interest payments you can deduct from your federal income taxes. This is another cost that some borrowers consider.  We can help you do the math!

Ultimately, for most people the amount of up-front costs to refinance are made up very quickly in monthly savings.  We'll work with you to determine what program is best for you, considering your cash on hand, how likely you are to sell your home in the near future, and what effect refinancing might have on your taxes.