When's the best time to refinance your mortgage? There's no hard-and-fast rule for when you should refinance. It really depends on your budget, plans as a homeowner and goals for the refinance. Are you looking to lower your rate or payment?
So, before you start filling out any paperwork, make sure you take a look at some top reasons to possibly postpone your refinance. When you refinance a mortgage, you have to pay closing costs, just like you did when you initially took out the loan. Closing costs range from 3% to 6% of the loan amount.
When you refinance a mortgage, you have to pay closing costs, just like you did when you initially took out the loan. Closing costs range from 3% to 6% of the loan amount. For example, a $200,000 mortgage could have closing costs between $6,000 and $12,000.