Lenders who specialize in refinancing usually require up-front payment for their services. Therefore, you need to figure out before the refinancing if the money paid to the refinancing lender will be worth the money you will save down the line.
The amount you have to pay is a percentage of the total loan amount, and is expressed in "points." One percentage point equals one point. To make things even more complicated, refinancing lenders often offer an extensive range of interest rate options: the lower the interest rate you want the refinancing lender to give you, the more upfront points you must pay.
Again, math is required. Research and determine what works best for you financially. Pay more money now to save even more money in the long-run? Or pay only a couple points to save a little less long-term?
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