Is a cheaper interest rate a good reason to refinance?
Maybe yes, maybe no. You need to ask:
- Are there advantages which justify paying the interest rate on the current loan?
- Are there hidden fees in the new loan which cancel out the cheaper interest rate?
And there is the secret about loan refinancing which the banks don’t want you to know. It is that you pay extra interest to the bank when you refinance because the new loan is 30 year loan. You will pay interest for 30 years, not interest for the remaining term of the current loan.
Video link: Refinancing: Why can't I have the cheapest interest rate?