Consider the fees when refinancing

When deciding whether or not to refinance your mortgage, you have a lot of things to take into account.

One of those things is the fees.

It is possible that just looking at the interest rate would make it seem like an obvious decision. "Well, the interest rate you signed in on previously is so high, and has since come down 3 full points". It seems like a no-brainer. You refinance and are set to save tons of money.

That might be true, but you need to find out what types of fees are involved in refinancing. Early payment of the original mortgage might include some hefty fees and even fines, depending on the mortgage.

It is possible that the fines and fees may be great enough that it will balance out the savings of the lower interest rate.

Make sure you include any fees and fines in your equation when trying to make the decision.