Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

To Refi, or Not To Refi? That is the Question!

During the refinance (refi) boom 6 years ago, many Mortgage Brokers sold clients on the idea of refinancing to lower their payments and/or rate and possibly cash out.  We all know the outcome of the cashing out part of that equation, but most people never look at why you should rarely refi to lower a rate or a payment.
On a $200,000 mortgage over 30 years at 6%, you will pay $231,000 in interest on top of the original 200k.  Most people think that this 216k interest is spread out, when in fact you pay most of it in the first 10 years.  So here is a scenario that comes across my desk with great frequency:
BORROWER: "I owe $193,000 with 20 years left on what used to be a $220,000 loan at 8% and my payment is $1,600.  I want to take advantage of the low rates and drop my payment as well."
MORTGAGE GUY: "OK, so adding closing costs, lets say your new loan amount is $200,000 at 6% you will drop your payment to $1,200.  And $400 savings over the next 20 years (240 mos.) is an $96,000 savings Mr. Borrower, what a fantastic savings!"
But ... more

__________________________________________________
Are you on The Rain? Grow Your Network!