Refinancing often doesn’t make sense if you are planning to sell your home soon. That’s because when you refinance, you pay the closing costs of refinancing upfront, either in cash or by adding them to your loan amount. By contrast, you enjoy the benefits of refinancing over time and it usually takes a while to "break even" on you closing costs. For example, if you save $100 a month by refinancing and pay $1,200 in closing costs, it will take you twelve months to break even and begin saving money.