 TITLE: Which Loans Should I Refinance Right Now? CONTENT: Is It Time to Refinance Your Mortgage?\n--------------------------------------\nFor homeowners, refinancing a mortgage can be particularly appealing. The large loan amount means even a small change in your interest rate can lead to significant changes in your monthly payment that add up to a lot of savings in the long run.\nEven if you got a mortgage or refinanced a mortgage last year, further rate drops stemming from the Fed's response to the economic turmoil caused by COVID-19 means it's worth taking another look. With mortgage refinancing, however, closing costs can limit your savings. And if you plan on moving soon, refinancing may actually wind up costing you more than you'll save.\nConsider your mortgage's current balance and see how much you'd pay if the closing costs set you back the typical 2% to 5% of the loan amount. For example, you may pay $4,000 to $10,000 on your $200,000 mortgage balance. If refinancing with a lower rate saves you $100 a month, it will take 40 to 100 months to break even. If you stay in the home and stick with the same mortgage for longer than that, you could save money.\nThe closing costs and savings can depend on the lender, interest rates and your creditworthiness, so shop around to see if you can find a good deal and if the numbers add up.\nEven if it doesn't lead to significant savings, you may also want to consider refinancing an adjustable-rate mortgage with a fixed-rate mortgage. Although the fixed rate may be higher than today's adjustable rate, locking in a low rate could be helpful when interest rates climb again. END