When Refinancing Makes Sense or Not

Sometimes refinancing a mortgage is a great way to reduce your monthly house note. Sometimes it's no costs listed below are some of the major fees and expenses generally imposed on mortgages, though v lenders charge different fees that might not be listed here. Be sure to ask your lender for the laundry list you will have to pay at closing, and include them in the line labled "Other." If the break-even period extends out farther than the amount of time you expect to remain in the house, refinancing at currently available rates does not make sense. Your Refinancing

Example Refinancing Costs Application fee Points Insurance Legal fees Title Appraisal Inspection Recording fees Other Total Costs Monthly Note Current payment New payment * Monthly savings Break-Even Period in Months $ $ $ $ $ $ $ $ $ $ 100 1,000 750 750 500 250 100 250 500 4,200

$ $ $

1,200 1,020 180 23.33

* If you're uncertain about what your new mortgage payment will be, fill in these green cells to calculate your monthly note. Then, insert the number in the New Payment cell above: Mortgage amount: Interest rate: Mortgage term (years): Monthly Mortgage:

Adapted from "The Wall Street Journal Personal Finance Workbook," by Jeff D. Opdyke.

Copyright 2006 by Dow Jones & Co. Published by Three Rivers Press, an imprint of the Crown Publishing Group, a division of Ra

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Publishing Group, a division of Random House Inc.