Home mortgage, exploring in depth
Just like when you obtained your original mortgage, you will have bank fees, documentation and title costs, attorney fees and appraisal costs. The next step is to figure out your "break even point," or when you will actually start saving each month. You do this by dividing your total estimated cost for the refinancing by your estimated monthly savings. This will give you a rough idea of when you will start saving. If your break even point is greater than the time you plan to own the house, it would not be wise to refinance.