Mortgage rates, however, are at a 50 year low so many people are successfully reducing their household expenses by refinancing their loans. Just yesterday I read an article that indicated as many as 79% of the new loan applications in June were for refinancing. If you are considering refinancing your property, ask yourself the following questions to see if it might make sense for you too:

1. THE RATE – - Will refinancing provide you a significantly lower rate? Anything at or above 1% difference from your current rate is significant.

2. THE FEES – - How high are the closing costs and fees? Be sure to check for hidden fees or state/ local costs (attorney fees) that may not be indicated on national websites. How many months will you need of the lower rate to off-set the closing costs and fees?

3. THE DURATION – - How long do you realistically think you will continue to own the property and how does this compare to the number of months you need to off-set the cost of refinancing?

4. THE PRODUCT – - As you think about how long you expect to own the property, you may also want to consider your alternatives when you select which loan fits your needs. Adjustable rate loans have even lower rates but they carry a risk if end up staying in the property long enough for the rates to start adjusting.