What Type of Refinancing Rates are you Looking For?

It may seem like a stupid question on the surface as to what type of refinancing rates you are looking for, but dig a bit deeper and you will see that it’s a very good question.  Of course, most would answer that they want the lowest refinancing rates available on the market, but is that the best deal for you?  The lowest refinancing rates will result in much higher closing costs because of the charge for discount points to buy down the mortgage rate.  If you plan on staying the new home loan for the duration, then the lowest refinancing rates available might be the best deal for you.  On the other hand, if you think you might be out of that new mortgage in five years or less, higher refinancing rates and lower closing costs will be the better deal.