When Considering Refinancing the lowest rates, a borrower must consider that over the period you will hold the mortgage, the total costs net of offsets will be lower on the new mortgage than on the existing one. The costs include a) Origination costs - points and other settlement costs, on the new mortgage only; b) Monthly payments of principal and interest, on both mortgages; and c) Lost interest on (a) and (b), also on both mortgages. Cost offsets on both mortgages are tax savings, and reduction in the loan balance.

When Considering Refinancing for a Low or lower Interest rate, most borrowers incur refinance costs upfront that must be recovered over time through the savings generated by the lower interest rate. The critical number is the "break-even period" -- the minimum length of time you must hold the new mortgage to make the refinancing pay.

In most cases, the mortgages with the lowest rates are Fannie Mae Conforming loans. These are mortgage loans that are conformed to Fannie Mae guidelines and thereby are eligible to be sold to FNMA.

Refinancing for a Low or lower Interest rate would be a great financial move if you could consolidate debt into your mortgage loan as well.

Refinancing for a lower rate or just simply for a fixed rate can often be a great financial decision. Refinancing for a lower rate can many times save a person hundred's of dollars off of your mortgage payment and help ease a consumer's financial situation. Also, refinancing to lock in on a fixed rate versus keeping an adjustable rate mortgage can often be a very wise decision and save you tens of thousands of dollars, if not more, by locking your rate in now and saving yourself the grief of having your interest rate increased over time.

It is best to review all of your options when you are considering refinancing. Many times a slightly higher rate can offer you more benefit if you have the chance to consolidate more debt or put cash in your pocket.

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