Refinancing errors often begin when borrowers focus on an attractive rate and overlook the transaction as a whole. Refinancing mistakes include focusing exclusively on monthly payments, overlooking fees and failing to calculate the break-even period. Borrowers should compare total interest costs and loan terms.
The article's subject highlights the importance of looking beyond an advertised rate or monthly payment. Taxes, insurance, transaction expenses and long-term ownership costs can materially change the result. The break-even calculation should be done before signing, not after the first new payment arrives.
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