Check the Refinance calulator first.


Refinance Considerations
When you're making your decision, there are several things in mind.

First, even a small rate cut can pay off quickly. That's because you can easily find mortgage companies willing to waive routine refinancing charges such as application, appraisal and legal fees (which can add up to $1,500 to $3,000). Of course, in exchange for low or no up-front costs, you'll have to be willing to accept a rate that's somewhat higher than the prevailing rock bottom.

Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay "points" (a point equals 1% of the loan amount) and closing costs to get the lowest available rate.

And third, you can avoid laying out cash and still get a low rate by adding the points and closing costs to your new mortgage. Does that mean shouldering a lot of extra debt? Not necessarily. If you've had your current mortgage for at least three years, you've probably reduced your balance by several thousand dollars. So you may be able to tack your closing costs onto your new loan and still end up with a mortgage that's smaller than your original one -- plus, of course, a lower rate and lower monthly payment.

Should You Refinance?

The risk involved in refinancing your current mortgage is nearly non-existent. If you think you'll save money by refinancing, now is a good time to act.  Thousands of people refinance their homes and save money every day, look at some of the benefits of refinancing today.

Refinancing your home loans can allow you to take advantage of these benefits

• Lower interest rates resulting in lower monthly payments
• Consolidate high interest rate, 2nd liens, home improvement and/or swimming pool loans or credit card balances into one lower interest rate mortgage and better terms and tax deductible interest costs
• Make Home Improvements and make your home a better place to live.
• Get Cash Out to spend as you wish.  Use it for vacations, tuition, starting a business.
• Shorten your term to Build Equity Faster.
• Trade your ARM in for a fixed rate loan and lock in long term savings.
• Current appraised value - not purchase price is used to calculate LTV ratios. (if you have owned the property for over 6 months) You may be able to avoid PMI costs.
• Pay off balloon payments or call provisions on your current loan.

Refinance application