making your decision, there are several things in mind.
a small rate cut can pay off quickly. That's because you can easily
find mortgage companies willing to waive routine refinancing charges
such as application, appraisal and legal fees (which can add up
to $1,500 to $3,000). Of course, in exchange for low or no up-front
costs, you'll have to be willing to accept a rate that's somewhat
higher than the prevailing rock bottom.
you are planning to stay in your home for at least three to five
years, it may make sense to pay "points" (a point equals 1% of
the loan amount) and closing costs to get the lowest available
you can avoid laying out cash and still get a low rate by adding
the points and closing costs to your new mortgage. Does that mean
shouldering a lot of extra debt? Not necessarily. If you've had
your current mortgage for at least three years, you've probably
reduced your balance by several thousand dollars. So you may be
able to tack your closing costs onto your new loan and still end
up with a mortgage that's smaller than your original one -- plus,
of course, a lower rate and lower monthly payment.