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The cost of refinancing also varies greatly from lender to lender.
That makes the cost of refinancing higher than it is in most other states.
Trouble is, the cost of refinancing the money in today's blighted capital markets would be prohibitively expensive.
That confidence has now evaporated as investors focus on long-term obligations, which continue to grow as the cost of refinancing mounts.
Yields on Hungarian 10-year government bonds reached a 2011 high of 8.8 percent on Wednesday, a level that raises the cost of refinancing the national debt.
But with lenders demanding ever higher interest rates for Spanish debt, the cost of refinancing might prove too much for the government.
Similar(49)
Ms. Francis says these institutions will sometimes convert an ARM into a fixed-rate loan for a flat fee amounting to much less than the closing costs of refinancing.
With the costs of refinancing those loans now soaring due to the breakdown in trust in the international banking system and the 30% plunge in the South Korean currency, the won, this year against the dollar, doubts had grown as to whether they could raise the necessary greenbacks to repay them.
The same thinking applies to adjustable-rate mortgages: If you're paying a high APR, it may be time to repay the remaining debt (if you can) or refinance into a fixed-rate mortgage at a lower rate, but only if your expected savings outweigh the costs of refinancing.
Mr. Austin, who is also a tax lawyer, said another frequently overlooked factor could help reduce the cost of a refinancing.
The call does not eliminate the effect of rate changes because there is still a big frictional cost to refinancing (appraiser's fee, points and whatnot).
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