{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.getloans.com\/blog\/important-things-to-remember-when-refinancing\/#BlogPosting","mainEntityOfPage":"https:\/\/www.getloans.com\/blog\/important-things-to-remember-when-refinancing\/","headline":"Important Things To Remember When Refinancing","name":"Important Things To Remember When Refinancing","description":"I hear of many people getting sold a refinance instead of making sure they are doing it for the right reasons. Below are some good notes to remember when thinking of refinancing. Important Things To Remember When Refinancing \u2022 Don’t pay discount points on a refinance. Keep costs low. \u2022 You still have to qualify […]","datePublished":"2012-02-23","dateModified":"2024-09-26","author":{"@type":"Person","@id":"https:\/\/www.getloans.com\/blog\/author\/brianm\/#Person","name":"brianm","url":"https:\/\/www.getloans.com\/blog\/author\/brianm\/","identifier":2,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/b03dd1a5c12d48f4023463adfa5dbd6d38ebf6f4d842bd8f8d55ec71cb0ca275?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/b03dd1a5c12d48f4023463adfa5dbd6d38ebf6f4d842bd8f8d55ec71cb0ca275?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Person","name":"Brian Martucci","image":{"@type":"ImageObject","@id":"https:\/\/www.getloans.com\/wp-content\/uploads\/2026\/06\/brianmartucci-getloans-logo2017.webp","url":"https:\/\/www.getloans.com\/wp-content\/uploads\/2026\/06\/brianmartucci-getloans-logo2017.webp","width":400,"height":70}},"image":{"@type":"ImageObject","@id":"https:\/\/www.getloans.com\/wp-content\/uploads\/2012\/02\/remindermagnet-4872634_1920.jpg","url":"https:\/\/www.getloans.com\/wp-content\/uploads\/2012\/02\/remindermagnet-4872634_1920.jpg","height":1272,"width":1920},"url":"https:\/\/www.getloans.com\/blog\/important-things-to-remember-when-refinancing\/","about":["Refinance"],"wordCount":260,"keywords":["refi","refinancing","when to refinance"],"articleBody":"I hear of many people getting sold a refinance instead of making sure they are doing it for the right reasons. Below are some good notes to remember when thinking of refinancing.Important Things To Remember When Refinancing\u2022 Don’t pay discount points on a refinance. Keep costs low.\u2022 You still have to qualify with the proper debt ratios, income, and credit.\u2022 If you have the assets consider paying your loan down if your appraisal comes in lower than needed.\u2022 When you hear “no cost” refi’s being advertised, they are simply building the costs into a higher rate.\u2022 Don’t refinance from a Conventional to an FHA. The mortgage insurance cost on an FHA loan is enormous.\u2022 Don’t solely shop price, also shop experience and execution. It is a very difficult time in the mortgage industry. Shopping price will get you in trouble. There is no free lunch.\u2022 All the rules of thumb about when to refi are wrong. Simply calculate the recapture period. What are you spending in costs and what are your savings per month, and then see if are you happy with the recapture period.ConclusionDon’t refinance if the costs are $4,000 and the savings are $100 a month. This is a 40 month recapture period. If you know you plan to move in 2 years this is not a good deal. And even without a planned move, a 40 month recapture period is horrible. I find most people I refinance achieve 10-18 month recapture periods. And they save anywhere from $200 a month to $500 a month, or more."}