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First, subtract the estimated monthly mortgage payment with the new interest rate from your current monthly payment. Add up all the fees you will incur by undergoing the mortgage refinancing. Much like you did when you obtained your original mortgage, you will incur costs for documentation work, appraisers, attorney hours and bank fees. Next, try to estimate how long you anticipate owning the property. Take the total cost of the mortgage refinancing and divide by the estimated monthly savings.

06/02/09 7

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