Followers of home mortgage
If your interest rate is already fairly low, you may find that the money you save on interest payments is eaten up by closing charges. * Similarly, will a longer loan term add enough extra interest payments to completely offset the savings you might have gotten through a lower interest refinance? Often, when people refinance, the bank offers them a mortgage with a longer term as well as lower interest rates, leading to attractively low monthly payments. However, the extended term also allows more interest to accrue. Use a loan calculator to determine whether you are really saving money, and if you are not, either decide to pay more than the minimum each month, or do not refinance. * Refinance with a fixed rate mortgage, not a variable rate mortgage.