Before refinancing your home, be sure to determine the number of months or years that you’ll stay in your home.
Are you planning to move soon? There’s no need to pay expensive closing costs just to enjoy a reduced interest rate.
Also, if you think your stay will be for life, refinancing and extending the mortgage term may still not make sense. Yes, the first few years may see you saving some dollars. But you’ll eventually have to pay more in overall interest rates over your new loan’s life.