For the love of mortgage rates
(Ideally the term of your new mortgage will be equal to the amount of time left on your old mortgage. Otherwise, the longer mortgage term is likely to offset any reduction in interest, and you may as well not refinance. ) Also calculate the difference between your current monthly payments and your monthly payments after the refinance. Then work out how much the fees and taxes of a refinance will add to the total. Beware these "hidden" costs: An average refinance frequently costs $2000 to $3000, and sometimes costs even more.