Refinancing cost
The total cost of refinancing your mortgage could be anywhere from 3% to 5% of the loan amount. It makes sense to spend this kind of money only if you stand to save a lot more over the next 15 to 30 years (depending on the mortgage term).
For instance, if your refinancing costs amount to $5,000 and if you stand to save $100 a month as a result, it will take you 50 months to merely break even. It is important to take the refinancing cost-to-savings ratio before going through with your decision.
