Adverse circumstances can lead to remortgages that cost a lot more than people bargained for. The reason? The numbers involved are small and their large, negative impact is not easy to see. And since we're already dealing with adverse circumstances, it is important to avoid additional burdens.

Rolling closing costs into the new home loan is the most common way adverse circumstances lead to further adversity. The amount is a few thousand dollars -- large but small compared to the principal.

People often roll the closing costs into the loan without fully understanding that a $3,000 becomes a lot more really fast. At 5% interest, amortized over 30 years, it takes $5,797.67 to pay back $3,000.

At 6% it takes $6,475.15; at 7 % it takes $7,185.27; at 8% the amount is $7,924.66; at 9% you're dealing with $8,689.92; at 10% you more it's more than 3 times: $9,647.77.

The additional monthly payments are small, $16 and change at 5% interest rate to $26 and change at 10%. These are amounts people figure they can easily afford, even people who are in already in adverse financial circumstances. That is very often the case. But the few extra dollars each month add up to a lot.

On a $200,000 loan at 10%, paying $26.33 a month each month gets the loan paid in 331 months, not 360. $26.33 over 30 years adds up to $8,688.90 but it saves $43, 245.96.

At 5%, making each month an additional payment of $16.10 (the monthly cost of rolling the closing costs into the loan) gets you smaller savings ($7,298.58). However, not rolling the closing costs into the mortgage is still a great idea. Using the money you would have paid to make additional payments makes this great idea into an exceptional one.

I cannot obviously cover all the interest rates and all the possible mortgage principals, but most mortgage/remortgage sites have amortization calculators. You can find out what the costs would be for you.

If at all possible, don't let adverse circumstances turn your remortgages into additional adversity; don't roll closing costs into your new home loan. Postpone getting the remortgage or borrow the closing costs from friends or relatives. Anything, as long as you don't roll it into the new home loan.

Dan M. Kennedy has seen firsthand the unintended and undesired consequences of mortgages and remortgages from several positions in the industry for over 10 years. He knows firsthand that many mortgage professionals don't think about all the consequences to a borrower that arise from the borrower mortgaging or remortgaging a property.

He is of the opinion that the best mortgages and best remortgages are the ones taken by home owners who are fully informed.

For more information on how to do remortgages go to http://www.RemortgagesBadCreditOrNot.com