Home equity loans, a discussion.
Go one at a time through the steps, and when you are done you will know whether now is a good time for you to refinance. First, what interest rate are you likely to be offered? The lower federal interest rates are and the better your credit score is, the better an interest rate you can expect. This step is partly dependent on the lending bank's evaluation of you and your financial situation, so you will not know your exact rate until the lender makes you an offer, but reading online sources can give you a good general idea of what to expect. When you know your likely interest rate, decide how long you want the term of the mortgage to be, and use an online mortgage calculator to work out how much your monthly payments will be after the refinance. (Ideally the term of your new mortgage will be equal to the amount of time left on your old mortgage.