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Mortgage Rates are Low, Should I Refinance?


While mortgage rates are still insanely low, many people are thinking that refinancing is a no brainer. If you have a good, or excellent credit score than refinancing right now could really help reduce your monthly payment going forward.

But there are plenty of situations where refinancing isn't the right choice. You must keep in mind that many of your original mortgage closing costs will creep around again when you refinance. 

Among these hidden costs are loan origination fees, title services, & even an updated appraisal of the property. According to Freddie Mac, on average these costs can amount up to $5K on average. How's that for saving money?

So should I refinance?

Great question. The easy answer is that it never hurts to look into- get an estimate of how much it's going to cost you up front before you commit to it. Then calculate how much you will save each month.

This choice is also highly personal to your situation. If you're flush with cash right now then chances are over the next 30 years of your mortgage it will pay off to refinance.