Some important things to consider when thinking of refinancing you home are:

• Lower interest rates can save you a lot of money over time. If the current rates are lower than what you are paying and your credit is in good shape you may want to refinance to a lower rate. This would give you a lower monthly payment and you would pay less interest over the life of your loan which could save you a lot of money.
   
• Keep in mind the fees and costs that come along with refinancing. You will have to pay fees like the loan origination fee, appraisal, application, and any legal fees involved with the refinance. You may be able to get these fees financed into your new mortgage or even waived if you are willing to pay a higher interest rate. Look at what your total payment will be once the fees are included before you decide to refinance your home loan.
   
• If you are planning to stay in your home for a while it may also be better for you to accept points in order to get a lower interest rate. One point is equal to 1% of the loan value, so if you were taking out a $100,000 loan one point would equal $1,000. So if you plan to live in your home for 10 more years than the points are much better to take up front rather than paying a lot more money over the years with a higher interest rate.
   
• How much equity do you have? If you have been making payments over many years and real estate prices have been rising in your area you may have more money invested in your home than you think. Be careful of this when you refinance. Don’t take too much cash out of your home and be left with a higher monthly payment that will strap you down financially. Keep a payment that will allow you the flexible income that fits with your lifestyle choices.
  
  
  No matter what the reason you are thinking about refinancing your home consider all of your options and your current way of living before you make a decision. Don’t over extend yourself. Make smart choices to lower your monthly payments or get the money you need without putting a financial burden on yourself or your family.