Analyze Your Savings - Check the market closely to determine the available rates and the costs associated with refinancing. These costs can include items such as an appraisal and other various fees and points.
Build Home Equity Faster - Even at low rates, a shorter term means a higher monthly payment. The benefit is that you'll build up equity faster and pay far less in total interest over the life of the loan.
Deciding to Refinance - Traditionally, deciding whether or not to refinance has meant balancing the savings of a lower monthly payment against the costs of refinancing.
Get Your Hands on Some Cash - Another way to make a refinance work for you is to refinance for more than the balance remaining on your old mortgage -- in effect, tapping your home equity, or "cashing out."
Mortgage Refinance Costs - When you refinance your mortgage, you usually pay off your original mortgage and sign a new loan. With a new loan, you again pay most of the same costs you paid to get your original mortgage.
Paying Points for a Lower Rate - In refinancing, a mortgage company usually offers a range of interest rates at different amounts of points. A point equals one percent of the loan amount.