Should I refinance if I plan to move soon?
This is an important factor to consider. Most lenders charge fees to refinance a loan. If you plan to stay in your home for less than a few years, there may not be enough time for your monthly savings to outweigh your up front costs. For example, let's say your refinance transaction lowered your monthly payment by $50 and the lender charged you $1,000. It will take 20 months ($1,000 divided by $50) for you to recoup the up front cost before you will begin realizing your savings. Some lenders offer "no cost" loans which come with a slightly higher interest rate but no other costs. The attractiveness of these loans depends on the interest rate you are being charged on your current loan.
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