Should I refinance if I plan on moving soon?
Most lenders will charge fees to refinance a loan. If you plan to stay in the
property for less than a couple of years, your monthly savings may not get a
chance to accumulate and recoup these costs. Let's say a lender charged $1,000
to refinance your loan, but it resulted in a monthly savings of $50. It would
take 20 months (1,000 divided 50) to recoup the initial costs before you start
to realize some savings. Some lenders will charge a slightly higher than average
interest rate on refinance loans, but waive all costs associated with the loan.
The attractiveness of these loans will depend on the interest rate you are being
charged on your current loan.