With interest rates at historical lows, refinancing your mortgage can be a tempting proposition. But to truly profit from a refi, you’ll need to run the numbers to confirm that you’re not wasting time and money.

As a rule of thumb, lowering your rate one half to three-quarters of a point is worth the effort and should reduce your monthly payment. However, if you’re planning to move in the near future, the savings likely won’t recoup typical closing costs.

Clarifying your financial goals is essential. Refinancing to a 15-year loan can provide significant savings on interest charges, but if freeing up cash for other expenses is the target, a 30-year loan can accomplish that goal.

To find out more, visit our Home Loans page.