Costs

• You need to understand all the money that is involved in refinancing a house. One of the most important questions to ask and understand is the break-even point. This is how long it will take before the refinancing costs are paid for by the savings of refinancing. If you don't live in your house at least until the break-even point, it is not worth refinancing. You also should ask what all the fees are for and if they are subject to change. Be sure to ask about how your taxes will be impacted. With the idea of getting the best deal you should also ask how much it costs to buy points and how points can save you money in the long run.
  
  

Paperwork

• You should ask about everything that you must sign and every piece of paperwork related to closing. You need to find out what paperwork you must provide that the deal depends on such as income verifying documents. A lot of papers must be signed and initialed, and it is best to understand them before closing because you may feel pressured to sign quickly.
  
  

Scams

• Its important to avoid any scams that may rip you off. Use the Federal Trade Commission and Better Business Bureau websites' to find current information about scams that are prevalent.