Mortgage refinancing is a great way to help you save money in the long run. It can lower your monthly payments, convert an adjustable-rate mortgage into a fixed-rate mortgage, or even allow you to take out cash for big purchases and investments. However, it's essential to do it right — otherwise, you could make mistakes that cost you big time.

Here are four mortgage refinancing mistakes that you should avoid at all costs.

Not Calculating the Total Cost

Don't just look at the interest rate when refinancing your loan. You also need to consider other factors, such as closing costs and prepayment penalties.

You should consult a mortgage refinancing calculator to get an accurate idea of what your total cost will be. A good calculator should provide you with an amortization schedule that shows you how much principal and interest you'll pay in every payment period.

Not Negotiating on Closing Costs

When it comes to refinancing, closing costs can really add up. Many lenders will try to charge a variety of fees, such as origination fees and application fees.

Research these charges to know what is reasonable and what you should negotiate with the lender. Don't be afraid to ask for a better closing cost deal — especially if you plan on staying with the lender for an extended period.

Not Shopping Around

It's always important to shop around and find the best possible deal when refinancing your mortgage. Different lenders will offer different rates and fees, so it's essential to compare different lenders and find the one that fits your needs best.

Also, don't forget to look beyond traditional banks when looking for a mortgage lender — many online lenders may offer you better rates and terms.

Not Considering Your Home Equity

Before deciding on a refinancing plan, consider your home equity. Your home equity is the difference between your mortgage balance and what your house is worth. The more equity you have, the better off you will be when refinancing, giving you more options.

For example, if you have a lot of home equity, you could opt for cash-out refinancing, allowing you to borrow more than you owe on your home and use the additional funds for investments or other purchases.

By avoiding these four mistakes, you can get the best possible deal on your mortgage refinancing. You should consult with a financial advisor to help you navigate the process and ensure you make smart decisions. With the right plan, you can save money on your loan and get back on track financially. For more information, contact a company like SCORE Mortgage Group.