Steps to ruin your refinance
1. Automatically refinancing with your current lender without shopping around
2. Assuming lower rates will automatically save you money without considering overall cost versus savings
3. Procrastinating over applying for a home loan while waiting for interest rates to drop. Don’t gamble on better future rates.
4. Not doing your sums. Decreasing your interest rate by at least 0.75% to 1% will save you about $100 a month on a $150,000 mortgage
5. Switching loans or lenders without clarifying whether the total costs (including legal fees, commitment fees, prepayment fee, administrative fee) are outweighed by the savings in interest