With the interest rates we’ve been experiencing for the past year or so, it may seem like there is no end in sight to historically low rates.

In the United States, Freddie Mac’s recent Primary Mortgage Market Survey, which provides a snapshot of U.S. average mortgage rates, reported a national average rate of 4.56 per cent with 0.7 points on a 30-year fixed-rate mortgage. At the same time last year, the rate was 5.2 per cent with 0.7 points. So once again, you might be asking yourself, is it time to refinance?

Assuming you can qualify to refinance your mortgage, here are some things to consider.

Your Overall Financial Picture

Refinancing can be a great way to save money. It can also be a great way to get yourself into financial trouble. You shouldn’t refinance if you suspect you will make a refinancing choice that will hurt your financial situation in the long term.

Your Breakeven Period

Your breakeven period is one of the most important considerations in a refinance. To determine your breakeven period, you need to look at the monthly savings you’ll create by refinancing and the total cost to refinance your loan.
The easiest and fastest way to get a complete picture of your refinancing situation is to use a detailed mortgage refinancing calculator, available online.

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5. Mortgage Rates Climb – More Aid for Homeowners