Our view is that it’s all about rates and fees, Suzanne. Ensure your banker gives you a detailed and completely comprehensive cost comparison of staying where you are and pursuing the new mortgage. The data will tell the story.
We’ve found that the real hit on costs with refinancing of any kind of mortgage, assuming rates are comparable, are in the closing costs. Certain aspects of closing costs are negotiable – origination fees, title insurance, homeowner’s insurance, etc. These are things you shop around for or ask to be reduced. Others are pretty set in stone – appraisals and credit report fees, for example. Compare carefully and ask questions if something seems vague. Odds are, if its vague, its “padding.”
.
