Mortgage Refinance - Overview

Many homeowners are taking advantage of currently low interest rates and refinancing their mortgages. Rising interest rates make it more important than ever for homeowners to consider if a mortgage refinance is right for them.

Should I refinance my mortgage?

There is no easy answer to this question. There are a number of factors that you'll need to consider to see if a mortgage refinance is right for you:

• Your current mortgage interest rate
• The type of mortgage you have (30-yr, 5-1 ARM, etc)
• The length of time that you plan to own the home
• The mortgage rates currently available
• Are interest rates increasing or decreasing.

In general, refinancing is a good idea for homeowners that:

• Want to reduce the interest rate on their mortgage (and the rates today are lower than their current rate) and intend to stay in the house long enough to cover the costs of the additional fees of a mortgage refinance.
• Want to shift from an ARM to a fixed rate mortgage. This is particularly interesting to homeowners that are in the variable period of their mortgage and expect interest rates to rise.
• Want to use their home equity to borrow money for major expenses such as a child's education, a remodel or a major medical expense.

There can be a tremendous difference in mortgage refinance costs between lenders. See the common mortgage refinance costs.