• There never were any "free lunches" in refinancing. No lender or loan broker gave anything away. When you refinance you usually agree to extend your loan. When you have paid several years on your loan and refi for a lower payment you usually agree to start over paying your loan for another 30 years. The equity you have paid is part of what reduces your loan amount.

• Obtaining lower interest on a fixed rate loan is wonderful and usually very worthwhile. But - don't forget points, fees, and strange amounts that show up in your loan escrow. Most people don't understand them. They are so glad to get a lower monthly payment that they don't really care how much more they are paying over the life of the refinanced loan. The loan fees are simply added to the new loan balance. So, the borrower doesn't feel like they really cost him anything!

• Points are fine. But, Their seems to be no limit to how many points a mortgage broker can charge. I have seen as many as eight (8) points added to unsophisticated taxpayers. They were told that they had a 'hard money" loan when they really should have qualified for a normal refi! The points charged by a mortgage broker are NOT related to what the actual lender charged!!!

• There are understandable and normal charges for appraisal fees, escrow fees, title fees etc. However, since most refi's include fees and points in the refi. loan amount, most of my clients don't really care how much these charges are. Excessive charges are often charged! I find Credit Unions to be the most honest and up-front with you - my clients.

• So many things in life keep changing and getting more complex. Just because you weren't aware of the above current factors doesn't mean that you didn't get a good deal based on your situation at the time you refinanced. My hope is that the above will help you be even more informed when you refinance again.

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