When is it Wise to Refi?

A mortgage refinance is the process by which a homeowner obtains new financing on property already owned, replacing any existing liens. The hot question, 'When is it wise to refinance?' Simple, when the benefits outweigh the costs. The refinancing costs include closing fees, which lenders often roll into the new mortgage, or extending the term of the mortgage. A mortgage refinance is beneficial when the savings of a lower rate or the need to obtain funds from the equity, or 'cash out,' offsets the costs of the refinance.