If you’re still within your secure-into the months: Prepayment penalty So you have just viewed simply how much you are paying this times on your property loan, and you are clearly certainly provided switching to other lender into down rates of interest… Except that you do not determine if refinancing is an excellent alternatives. Can it be in a position to save a little money on the long-title? Is the cost of refinancing worthy of it? Here are a few will set you back you will confront when refinancing your residence loan: If you have more than 6 months going before prevent of the secure-into the aka the latest commitment period (as the financial institutions manage place it), refinancing create happen redemption costs of around step 1.5% of the a fantastic loan amount. Envision you’ve taken right up good $five hundred,one hundred thousand home mortgage, and you may you paid up $two hundred,000 of principal, having $300,000 an excellent.