If you are mental about refinancing you need to be aware of the possible penalties, risks of refinancing or clauses the banks may hold on your old mortgage.
Most mortgages contain penalties within the mortgage if you determine to pay down your mortgage or if you determine to pay your mortgage out completely. You need to weigh the advantages or disadvantages of refinancing. Let's say you have a fixed mortgage with a high interest rate, most likely your penalty will be in the thousands of dollars depending on your current mortgage balance. You will need to determine if the savings on interest and reduced cost amounts for your new refinance will outweigh the penalty costs on your current mortgage.
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One selection is a longer term for your new refinance. This can be very tricky also as you will start to accrue more interest payments as the length of your mortgage was extended.
