Run a break-even check before you refinance a mortgage
Added
Before refinancing, add up the new loan's fees and closing costs (plus any prepayment penalty) and divide by how much you would save each month. That tells you roughly how many months it takes to earn the costs back. If you might move or refinance again before then, the lower rate may not pay off.
The result
Result: Federal Reserve consumer guide: a break-even calculation shows how long it takes to recover refinancing costs, and if you plan to move in the next few years the monthly savings may not exceed those costs.
Note: Not financial advice. General information only; check your own situation or ask a qualified professional.
Source
Federal Reserve: A Consumer's Guide to Mortgage Refinancings (opens the original source in a new tab). Check it for the latest numbers before you act.