Rants on the topic of home equity loan
When you know exactly how much refinancing will cost, divide it by the difference between your current monthly payments and your future monthly payments. The result is the period, in months, that it will take you to break even after you have completed the refinance. For example, if you are currently paying $1200, your future payments would be $1000, and the refinance would cost $2200 in fees and taxes, you will break even in 11 months. After that, you would start seeing savings from your new mortgage. Ask yourself whether you are going to stay in your home long enough to see noticeable savings from a new mortgage.