When refinancing your mortgage, you will pay many of the expenses you paid for your original mortgage. Some of these expenses are subject to negotiation; doing your homework and researching mortgage lenders can greatly reduce your out of pocket expenses when refinancing. Here are tips to save you money when refinancing.

Refinancing is simply the process of paying off your old mortgage with a new loan. When you take out the new mortgage the costs involved include lender fees, settlement costs, and points. If your old mortgagee included a prepayment penalty in the loan contract you may be required to pay the penalty in order to refinance. Some States prohibit prepayment penalties; if your State has a law against this penalty you will not be required to pay the penalty.

Your total expenses will depend on the interest rate you qualify for, the number of discount and origination points you pay, and how much your closing costs are. Do not be afraid to negotiate with your mortgage lender any of these expenses, especially if you have good credit. You can learn more about saving money when you refinance your mortgage, including common mortgage mistakes you will need to avoid, by registering for a free mortgage guidebook.