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