When should you refinance?
Some common reasons homeowners refinance include:

• Lower monthly mortgage payments
• Convert an adjustable rate mortgage (ARM) to a fixed-rate mortgage
• Raise funds for family expenses (i.e. college tuition)
• Pay off high-interest loans
• Home improvements

The old rule of thumb is that you should refinance your home if interest rates fall more than 2 points below your existing mortgage rate. That’s because refinancing usually involves most of the same closing costs (loan origination fee, prepaid interest, etc.) as the original loan. For anything less than 2 percent, the savings on your monthly mortgage payment might not be significant enough to be worth your while.