The whole idea of refinancing to the same kind of loan that you have as to your current mortgage, just with a lower interest rate is a decision that you will probably not regret in the future. What you must be sure of is that you intend to stay in your home for a long enough period for the savings in interest will cover the cost of the refinancing.

In the USA there is an important safeguard which has been set up against predatory lending and this is the Federal Truth in Lending Act. This guarantees those people who refinance against their primary residence a 3 day grace period in which to back out of the agreement after the refinancing has closed, so long as they have refinanced with a lender who is different from the one that currently holds the mortgage on their property. This is called the “Right of Rescission” and you may find that very few borrowers will take advantage of this option. Yet knowing that you have this right to back out if you wish from what you consider is a bad deal, will help to make the decision of refinancing a little less stressful for you.

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