What are the benefits of refinancing?
Most people would agree that it only makes sense to refinance your mortgage if there is some tangible benefit to doing so.
If you took out your mortgage prior to the financial crisis of 2008, you'll likely still be able to refinance at a much lower interest rate, which will lower your monthly payment.
Cashing out your home equity: With a cash-out refinance, you refinance your home for more money than you currently owe on the property.
Just like when you first took out your mortgage, you have to pay closing costs in order to receive your new loan.
With that in mind, it's important to look at how long it will take you to break even on your refinance, or how long it will take you to recover the cost of those fees and truly start to see savings from your new loan.
How much equity do I have in my home?
(Though, it is possible to find lower options.)
Finding how much equity you have in the property is easy.
Then, if so, to factor those fees into your cost calculations for your break-even point.