There are many reasons homeowners refinance: to lock in a favorable interest rate, to withdraw equity they've built up in their home, or to pay off their mortgage more quickly. If you're thinking about refinancing, here are some things you'll need to consider:

• The interest rate of your current mortgage versus the current rate. If, for example, you see that rates have dropped two points, you'll want to seriously consider refinancing.
• The type of loan you have. If you have an adjustable rate loan, you may want to refinance to switch to a fixed-interest loan.
• How long you plan to stay in your house. If you’re thinking of selling in the next three to five years, the amount you save on refinancing may not cover the costs associated with closing.