With Mortgages at Historic Lows, Now is a great time to Refinance

With mortgage rates at historic lows, homeowners eager to lower their payments are rushing to refinance in numbers reminiscent of this decade's real-estate boom.

The Mortgage Bankers Association said Wednesday that mortgage-refinance applications rose to almost triple their level a year ago. The average contract interest rate for 30-year, fixed-rate mortgages stood at 4.73%, down from more than 6% a year earlier. About 80% of all mortgage applications are for refinancing.

Prior to refinancing your current mortgage, be sure to consider additional factors as well, such as how long you intend to be in your current home. If you are thinking of a move within five years, you may not save enough in payments to pay for the closing costs. If, on the other hand you are going to be in your existing home for a longer term, refinancing may be just the right thing to do!!!