12-11-2009, 06:46 PM
First you need to know what the fees are. Next, you need to do as others have said and find out if it ends up costing you more.
If you've only had the house a couple years, a refinance may be the way to go. But much more than that, and you've paid down a good chunk of the interest and very little of the principal. Refinancing is a way to reset that interest clock so you end up having to pay a bunch of it a second time.
If you've had it a while but have a high interest rate, a modification may be the way to go. There are multiple plans for this. Some are free, some are not but still less expensive than a refinance. You are likely better off getting your current loan modified to a lower interest rate than refinancing it.
If you've only had the house a couple years, a refinance may be the way to go. But much more than that, and you've paid down a good chunk of the interest and very little of the principal. Refinancing is a way to reset that interest clock so you end up having to pay a bunch of it a second time.
If you've had it a while but have a high interest rate, a modification may be the way to go. There are multiple plans for this. Some are free, some are not but still less expensive than a refinance. You are likely better off getting your current loan modified to a lower interest rate than refinancing it.