The short answer is that refinancing isn’t right for everyone, so it depends on your situation. It largely depends on how much it costs to refinance and how long you plan to stay in your home.
Refinancing your mortgage isn’t free — there will be some sort of lender fees and closing costs to worry about. If you plan to stay in your home long enough that you’ll save more in interest than you pay to refinance, it can be a smart idea.
Here’s a simplified example. Let’s say that you can lower your monthly mortgage payment by $50 if you refinance, but it will cost you $2,000 in various fees to get the loan. Dividing $2,000 by $50 shows that you would need to stay in the home for at least 40 months for refinancing to be worthwhile.
For more on whether or not refinancing is worth it, check out our guide.
View more information: https://www.fool.com/the-ascent/mortgages/best-refinance-lenders/