 TITLE: How Much Does It Cost to Refinance a Mortgage? CONTENT: How to Decide Whether Closing Costs Are Worth It\n------------------------------------------------\nWhatever the fees may be for your particular mortgage refinance, it's important to compare the costs with the benefits.\nAs one example, let's say you're refinancing a $300,000 mortgage with a 30-year term and a 4.25% interest rate. The new loan rate is 3.25%, and you're keeping the same repayment period that you have now.\nIn this instance, the refinance reduces your monthly principal-and-interest payment from $1,476 to $1,306, a monthly savings of $170. Now, if the closing costs on the refinance total $9,000, it will take you roughly 53 months, or almost four and a half years, to break even with the monthly savings.\nIf you're planning on staying in your home longer than that and don't anticipate refinancing again during that period, it's worth it. But if you think you'll sell the house before you reach that break-even point, the costs outweigh the savings.\nDoing a cost-benefit analysis on other mortgage refinance purposes can be more challenging because there isn't necessarily a clear way to compare what you'll get with what it'll cost you. But it's still a good idea to consider both the benefits and drawbacks.\nIt's also important to note that you can often roll the closing costs into your new loan. While this saves you money upfront, it can cost you more in the long run because you're now paying interest on closing costs in addition to the principal loan amount. END