Conditions are constantly changing to make us think that the home loan we have is the worst one in existence, and we should be looking at a different mortgage.

Yes, as times change, we may want to consider a new mortgage, but make sure you consider all of the factors before you make a new commitment for 5, 15 or 30 years.

If done in a timely manner, refinancing can have a lot of benefits. Depending on the terms (rates and maturity), a new home loan financing can allow you to lower your monthly mortgage payments and pay the mortgage off earlier.

Whether the cost savings are worth it in the long run is what needs to be examined. What are the conditions that make this a good choice?

Fixed rate mortgages are traditionally considered more desirable than variable rate loans, since mortgage rates have traditionally increased. To save yourself from the risk of constantly rising rates, you can re-finance to take advantage of fixed vs. variable rates.

One of the best reasons to refinance is if you have spent the past years fixingyour credit and you may now be in a position to get better terms.

If overall interest rates have changed, do not hesitate to request a re-financing if you have an especially high rate loan currently.

Whether you want to or not, if you have a balloon mortgage, you will have to refinance every five years, and so it may be to your advantage to use this situation to shop around for better terms and rates.

An improved credit situation will automatically qualify you for more advantageous rates and even a longer maturity. If you have become tired of refinancing every five years, this will be welcome.

You may want to consider refinancing if you are currently paying sizeable mortgage insurance premiums and are now in a position to eliminate them.

The main condition to examine, after looking at all of the reasons you may want to refinance, is how much it is going to cost to refinance. You should be able to receive an exact accounting of the closing fees, and then compare that to the costs on your current mortgage.

If these costs exceed or are even just equal to the total savings you can achieve, refinancing your home will not be worth the cost and trouble.

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