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Refinancing to Pay Off Mortgage Early
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Trying to get a better handle on my monthly expenses, and I keep seeing ads about refinancing to lower payments. Is it actually a good move for budgeting, or are there hidden fees that make it pointless? Anyone regret doing it?
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Is it actually a good move for budgeting, or are there hidden fees that make it pointless?
Lower payments sound tempting, but I’d be careful. Refinancing can stretch out your loan term, so you might end up paying more in interest over time even if your monthly bill drops. Those “no closing cost” offers usually just roll the fees into your new loan anyway. I refinanced a few years ago and yeah, my payment went down, but when I looked at the total cost over the life of the loan... not as great as it seemed upfront. If you’re planning to stay in your house long-term, it’s worth running the numbers twice.