I’m currently starting the process of refinancing my condo. The key for me was seeing that interest rates are now about 1.5% lower than they were when they bought, which will decrease my loan payments pretty dramatically. I’ve also figured out what the charges and fees for refinancing will be and determined that in the long run a refinance at this point is a good idea.

If you’re thinking about refinancing your home or your investment properties, then you should consider similar factors. There are also a couple other things to think about before you decide to go ahead with a refinance. These other mitigating factors are how long do you plan on being in your home, your current equity position in the home, and are you thinking about doing a cash-out refinancing. Another thing to consider is whether the current equity in your home will eliminate your PMI insurance.

There are always fees associated with refinancing, even if you wrap them into the mortgage and pay with them that way. If the new mortgage rate is not significantly lower than your current one you may not be getting the deal you’re hoping for. Also, if you plan on moving or selling the property soon then you may not appreciate enough savings from your lower percentage rate to erase the closing fees.

Each situation is different, so don’t just jump at the chance for a lower rate, look at the picture from all sides before making a decision.