The family home is, for many consumers, the most significant assets they own. A lot of money goes into the family home and we all know it is important to look out for ways to reduce payments. Mortgage refinancing can be an important way homeowners are able to save money on their mortgage payments, but there are certain costs associated with it, so it is important to know when it is a good idea and when it is not. Conventional wisdom on the matter isn’t always accurate.

One way to no fore sure whether mortgage refinancing is worthwhile is to take advantage of so-called no-cost refinancing. While lenders sometimes define no-cost differently, the idea behind no-cost refinancing is that the costs are rolled into the monthly payment. When a borrower can save on his or her monthly payment without worrying about additional closing costs, it is worthwhile to refinance.

There are a couple things to keep in mind about refinancing. Oftentimes borrowers find out about refinancing through advertisement whether by mail, phone or solicitation. Marketing material isn’t always trustworthy, though, and nothing should be assumed.

It is also important for those seeking a mortgage refinance to understand all the terms of their new loan before agreeing to go through the process. Don’t agree to terms you can’t understand. It can help borrowers to work with an experienced real estate attorney who can keep their best interests in mind throughout the process. Even when this isn’t necessary, it is not a bad idea simply for peace of mind.

Source: The Mortgage Reports, “With A Chance To Save 28% Per Year, Fewer Homeowners Wanting To Take Today’s Lower Rates,” Dan Green, March 13, 2014.