Cons of Mortgage Refinancing

Posted by samvj on January 11, 2010

• If your mortgage is five years old or more, refinancing to a new 30-year mortgage could result in higher total interest payments even if the rate is lower.
• There will be a transaction fee for refinance, as soon as one takes the refinancing route acting as a complete spoilsport to all your saving plans.
• If you have a prepayment penalty on your existing loan or will not be in your home long enough for the savings to outweigh the costs, refinancing may not be the right option to go for.
• Most of the fixes rate mortgages invoke a penalty clause on the early payment of the loan.

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