Last week, the average fixed-rate on a 30-year mortgage fell to an astonishing 2.88%. Not surprisingly, falling interest rates have led many mortgage-holders to investigate refinancing their loan.
However, financial experts like Jeff Ostrowski, a reporter for Bankrate, cautioned borrowers that closing costs could make refinancing less attractive.
Closing costs (e.g. home appraisal costs, title insurance, origination fees, etc.) could add thousands of dollars to the loan. Not all closing costs are the same, though, which is one of the reasons that people like Mr. Ostrowski say homeowners need to shop around.