There is so many offers of free financing, but just how free is it? The truth is that you could end up paying more for your mortgage (even with a lower interest rate). You need to read all the fine print and look at the end result (how much you will eventually pay out).

Refinancing could mean a much lower monthly payment, and that is usually a great thing under any circumstances. Lower financial pressures are a complete relief right now for most people because of higher prices at the pumps, at the grocery and about every where else as well. But those same lower monthly payments could mean thousands of dollars in the end. Typically the payments are less because they are spread out over a longer period of time than is left on your current mortgage.

No closing costs usually means that there is nothing that the borrower will be expected to pay at the final closing. Instead of having the customer pay at the time of the loan, those fees are just rolled into the loan. It may mean less out of pocket expense, but after adding on all the interest you may find that having no closing costs is not worth the ultimate price.

There can be a time and a place for refinancing. Here are some tips:

Limit the amount that you borrow to the bare minimum.
Pay any fees out of pocket instead of borrowing them.
Keep your term to that same number of months left on your current mortgage.
Work out a lower interest rate.

If you can stick to these tips then refinancing may be a financially sound decision.