Can refinancing my mortgage help me save money in the long run?

I am currently considering refinancing my mortgage and would like to know if this option can help me save money in the long run. I purchased my home three years ago and have been making regular mortgage payments since then. However, I recently learned that interest rates have significantly dropped since I obtained my mortgage, and I am wondering if refinancing would allow me to secure a lower interest rate and reduce my monthly mortgage payments. I am also curious to know if there are any potential drawbacks or costs associated with refinancing that I should be aware of before making a decision.

Arthur S.

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Depending on the rate differential between your current mortgage loan and the refinancing proposal, the saving in the long term can be substantilal. In the short term, the savings in debt service payments will be off-set by the cost of the refinancing, e.g. commitment and loan fees, appraisal and other underwriting costs imposed by a new lender), mortgage title fees and atty fees (taking into account you, the borrower, customarily pays the new lender's atty costs). That said, many residential lenders limit the costs to residential borrowers of the financing costs of any such refinancing),