Posts on mortgage loan
The first step is to calculate the costs you will incur to refinance. For example, sum up your estimates for costs of attorney hours, appraisers and document filing. Make sure to include any penalty fees for paying your original mortgage off early. Then, subtract the new monthly payment from what your current payment is to know how much you would save each month. The third step figures out when your break even point will be, by dividing the cost of the refinance by what you would save each month.