When deciding whether you will save money by remortgaging your home, you need to take all of the fees into consideration. Ask your lender for a list of the fees that they charge for the loan as well as the things you must pay for in order to get financed, such as an appraisal or title insurance.

As a rule of thumb, it is usually beneficial to remortgage if you can get an interest rate two percentage points lower than your current mortgage. However, this can vary based on the fees involved in getting the new loans. If your new loan has higher than average fees, you may need a lower interest rate to make up for them.

You can use an online mortgage calculator to create an amortization table for both your current loan and the new loan to figure out which is the better deal. You’ll need to know how much you owe on your current loan and the interest rate you are paying on it. You can then figure out how much more interest you will pay over the life of the loan if you keep it. Compare that to the total amount of interest you will pay on the new loan, plus the costs and fees involved in getting the new loan.

Every situation is different, so the only way to know whether you will save money by getting a bad credit remortgage is by doing the math. If the new loan is a better deal, then go for it. You can save even more money by continuing to pay your current payment amount each month even though the new payment is lower. This will allow you to pay off the new mortgage early and save you thousands in interest.