Stay current with available refinancing rates Keeping up with the interest rates is a good way to know when to refinance your home. The economy affects mortgage rates and your payments rise with the rates if you have an adjustable rate mortgage.

I recommend:  Stay abreast of current mortgage interest rates at Bank Rate. Calculate your refinance mortgage rate with a mortgage calculator at Mortgage-calc and find other financial calculators from the CCH Financial Planning Toolkit.

Find out all the costs associated with mortgage refinancing Ask your broker for his current mortgage interest rates and see if the rates are fixed or adjustable. Also, you will need to know the annual percentage rate (APR), which takes into account the interest rates, fees and other charges.

I recommend:  Get refinance mortgage rate quotes from lenders at Mortgage Quotes. Learn what the current APR is in your area at Century21.

Paying points may give you the best refinance rate Fees paid to a mortgage refinance company are called points. One point is equal to one percent of your loan amount. These fees are usually paid at closing. The amount you pay for points is tax deductible for a new loan, but not for a refinance. Also, ask your mortgage refinancing lender if there are other fees related to your points. In some cases, you may come out ahead by paying points.

I recommend:  Mtg-net may help you decide if paying points is a wise decision. Mortgage 101 offers a calculator to compare costs associated with paying points for a lower refinance mortgage rate.