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Loan Cost. |
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Make sure you know all the costs associated with getting out of your current loan and entering into a new loan. These costs include penalties for breaking out of your current loan and legal fees, and if required, private mortgage insurance. Only when you have all the costs associated with refinancing your mortgage and the monthly payment savings will you know whether it’s worth your while to go ahead with the new loan.
Be aware of all the costs associated with the early discharge of your loan. Prepayment penalties could be in the thousands. It depends on how long you had the loan and the percentage of the loan balance outstanding that has to be paid in the event of any early discharge.
