Final answer:
Refinancing a home is true to carry similar costs to the original loan and must be carefully considered. Included in the costs can be the requirement for mortgage insurance with low down payments, and the financial landscape, such as federal regulations, can also influence the decision.
Step-by-step explanation:
True, refinancing a home does indeed require you to pay many of the same costs as the original loan, making it essential to thoroughly investigate before proceeding. These costs may include application fees, loan origination fees, appraisal costs, and others that are typical when acquiring a mortgage.
Moreover, understanding the implications of mortgage insurance when making a down payment of less than 20% can also impact the overall cost. While a low down payment, ranging from 0 to 3.5%, might seem attractive, it usually requires buying mortgage insurance, which increases the total amount paid over the life of the loan.
The decision to refinance should also consider external factors, such as whether federal regulations have changed to make it cheaper and easier for banks to make home loans, potentially affecting interest rates and availability of credit.