The costs of refinancing have decreased greatly in the past several years. Borrowers can save thousands of dollars up front using 'no out of pocket' loans, for example. Also, closing costs can usually be included in the new mortgage loan amount so that no cash is required to execute a refinance.

Paying Points for a lower interest rate is an excellent idea if you are staying inthe property more than 4 years.

Deciding whether to refinance usually involves totaling the costs of refinancing and subtracting those expenses from the total savings expected. It is also important to determine how many months it will take to pay back the costs of refinancing from the savings that will accrue.

The savings that can be obtained from refinancing depend directly on the answers to the above questions. It is best to answer these questions with the help of a qualified mortgage professionals.