If you're looking to refinance your mortgage interest rate then now is a good time. The finance crisis has left many people wrestling and defaulting on their loans, which have left banks more open to refinancing at a favorable rate to you if you have good credit. The question then becomes whether you need to refinance or not.

While having a lower rate of interest can save you money in the future in the near term there will be closing costs that you must cover. The average closing costs on a $200,000 loan is $3,118. To this figure you will also have to factor in other costs like charges, taxes, insurance, and organisation dues. So you'll have to figure out the quantity of money that you are saving and how long it will take to get back these costs.

So for instance if you're saving $100 in interest expenses it'll take you 31 months before you begin saving money. Generally refinancing to a lower interest rate only appears sensible if you plan on being in your current house for another 4 years or longer. If however you plan on moving and selling your house then you'd be better off on keeping your current loan.

One more reason that you may have an interest in refinancing is that you need to consolidate debt or extend your payment from 25 to 30 years, so cutting back your regular mortgage costs. In such cases refinancing can sound right. You just need to weigh the over all costs and benefits.

one way to keep abreast of the current mortgage rates is thru the BankRate.com and Mortgageloan.com websites. They keep track of current mortgage and housing trends and provide you with the most recent stories in their free newsletters.

Ultimately you will want to get a copy of your credit score before applying before trying to refinance your mortgage at a lower rate of interest. You can do this at FreeCreditReport.com every year. If your credit score is currently not above 600 you should consolidate and pay off some of your debt before applying.