Mortgage Refinancing Basics

The best way to determine whether you’ll come out ahead or not when refinancing, is to weigh both the costs and benefits of your decision.

Though mortgages may have 30-year terms, very few homeowners actually stay with the same loan over that period of time. The average American generally refinances his or her mortgage within four years, because paying off your present mortgage to take out a new one can mean very obvious savings over several years. Refinancing comes with a price, however, so it’s important to consider both the costs and benefits before making your decision.