Potential disadvantages of refinancing may include:
• You’ll have to pay closing costs.
• You might have a longer loan term, adding to your costs and delaying your payoff date.
• You could have less equity in your home if you take cash out.
• You might need to deal with borrower’s remorse if rates drop substantially after you close.
• It’s not an overnight activity: The refinancing process can take between 15 and 45 days or more.
• Your credit score will temporarily take a hit.• Most refinances won’t affect your property taxes, but completing a remodel with a cash-out refinance can increase the value of your home – which could mean a higher tax bill.
• If you’ve paid off a significant chunk of your mortgage, refinancing might not make sense.