Is a low interest rate enough reason to opt for mortgage refinance ?
No. The advantage of a low interest rate can be offset by other costs, such as: penalty for premature closure of your existing mortgage loan, and upfront fees and charges you have to pay for your refinance loan. This is why the decision to opt for a mortgage refinance must not be taken on the sole basis of interest rate. You must take into the total cost of the new loan added to the cost of closing your original loan. The total cost of your new mortgage loan is best expressed as annual percentage rate (APR), not interest rate.
