Their are closing costs involved in a refinance.  Depending on the lender their can be a 1-3% origination fee of total value of loan, an application fee, prepaid interest, private mortgage insurance, doc stamps, title,  etc. What the consumer needs to do is see if it is financially worth refinancing.  I f you will save money throughout the term of the loan because of lower interest rate then do it.  Their needs to be a substantial savings involved.

Thats very true and due to the 'credit crunch' the costings and overheads are only going to go one way ----- UP!

 

Again don't go with your 'instinct' work with a financial advisor to make sure all costs (hidden or not) are covered