My little corner on home loans
These costs may include application, origination, and appraisal fees, insurance premiums, title search fees and county clerk recording fees, and discount points paid upfront to secure a lower interest rate. These fees will eat up any initial savings unless your interest rate is at least one half a percentage point lower than your prior loan. It is advisable to consider your long term plans before deciding to refinance your mortgage. You may not realize any savings if you plan to move within a few years. A refinance of your current mortgage makes financial sense only if you intend to remain in your home, as it may take several years to recover your closing costs.