Should I Refinance My Mortgage Loan?

There are many reasons homeowners refinance: to lock in a favorable interest rate, to withdraw equity they've built up in their home, or to pay off their mortgage more quickly. If you are considering refinancing, here are some of the things you will need to consider.

The interest rate of your current mortgage versus the current rate. The type of loan you have. If you have an adjustable rate loan, you may want to refinance to switch to a fixed interest loan.

While refinancing will include closing fees, the goal is saving money over the long term. Closing fees are always part of the equation. Even mortgages that are advertised as having no-cost or low-cost closings have closing fees -- they're just not called closing fees.

Refinancing isn't something you should enter into lightly: It can be time-consuming and expensive. But once you run the numbers you may find that the long-term savings will offset the costs related to refinancing. Then you can take the money you save each month from your reduced payments and put that to better use.