Home Owner Tips on Refinancing

• Refinancing your mortgage - Should you refinance, and when? And when does it make sense to take out a home equity loan in order to finance an addition, or to consolidate debts into a lower payment?

• When might it make sense for you to consider a reverse mortgage -- and just exactly what the heck is that, anyhow? Whenever interest rates drop, as they sometimes do when Alan Greenspan gets a little out of hand, homeowners might have the opportunity to save money. Lower interest rates generally translate into lower mortgage loan rates, and refinancing your mortgage at a lower rate can save you a few bucks on every monthly payment.

• Deciding whether to refinance your home comes down to a basic calculation: Will your savings from reduced mortgage payments be greater than the up-front costs? Therein lie the guts of the refinancing decision.

• Lose the thumb, use a calculator - When it comes to making this kind of financial calculation, everybody wants a simple "rule of thumb," and the financial trade is usually quick to oblige. Most commonly we are told to look for a minimum interest rate improvement of, say, two percentage points from our existing mortgage before we get serious about refinancing.

Bankrate.com - use their refi calculator to see if it is good for your situation.