Considering a mortgage refi? Lower rates are just one factor when refinancing a home loan

abcnews.go.com:

Mortgage rates haven’t been this attractive in more than a year, good news for homeowners eager to refinance

LOS ANGELES — LOS ANGELES (AP) — Mortgage rates haven’t been this attractive in more than a year, good news for homeowners eager to refinance.

Many homeowners have already jumped at the opportunity to lower their monthly payment, spurring a surge in mortgage refinancing applications.

And that was before the average rate on a 30-year mortgage fell this week to 6.2%, according to mortgage buyer Freddie Mac. As recently as May, the rate averaged 7.22%. It’s now at the lowest level in 19 months.

The rush to refinance makes sense, as even a slight drop in mortgage rates can translate into significant savings over the long run. For a home with the median U.S. listing price of $422,600, a buyer who makes a 20% down payment at this week's average mortgage rate would save $360 a month compared to what it would have cost to buy the same home in October, when the average rate hit a 23-year high of 7.79%.

Still, there’s more to consider than the mortgage rate. It can cost thousands of dollars to refinance, and not all the fees can always be rolled into the new loan.

Breaking even on the costs of refinancing may take months or years, depending on the difference between your current rate and your new rate. So refinancing may not make sense if you’re planning to sell the home before that happens.

Here are some key factors to consider as you weigh whether now is the right time to refinance your home loan:

While mortgage rates have come down, the average rate on a 30-year home loan is still more than double what it was just three years ago.

Some 86% of all outstanding home mortgages have an interest rate below 6%, and more