Refinancing to a new bank can be painful. However these days there are sweeteners to make it worthwhile.
Benefits can include
- Cash backs – a cash incentive offered to you by the new bank (has conditions like having to stick around for 3-4 years)
- A chance to restructure terms – things like interest only reset
- The cash backs could cover costs of getting a better ownership structure – Trusts, LTC’s
Costs
- Any past cash backs may have to be paid back
- Break fees and lawyers costs
- Time required in switching banks – changing AP’s
