 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 2\\. Determine Your Target Rate\n------------------------------\nMortgage interest rates change daily, and sometimes multiple times a day. With so many updates, it's important to do your research on current rates and trends.\nBut just because interest rates are lower than what you have now, it doesn't necessarily mean you'll save money. That's because, just like the initial mortgage process, refinancing comes with closing costs that can range from 2% to 6% of the loan amount.\nAs a result, you'll need to determine a target interest rate that would net you interest savings equal to or greater than your closing costs. Using an online mortgage calculator, determine how much money you'd save in interest with the lower rate each year, then divide the closing cost amount by that figure to find out how long it'd take you to break even.\nIf you're planning on staying in the home for longer than that period, you'll ultimately save money.\nAlso, it's important to consider that your goal of refinancing may not be to get a lower interest rate. For example, you may have an adjustable-rate mortgage and want to switch to a fixed interest rate to avoid rate fluctuations in the future, or you might want to get a cash-out refinance to tap some of the equity in your home. Work with a professional to help you run the numbers to make sure doing this is the right financial option for you. END