As interest rates continue to remain lower than they’ve ever been, you may be wondering if a mortgage refinance is right for you. 

Currently, the interest rate for the most attractive borrowers falls below 4 percent. 

Here are some questions to ask yourself to determine if now is the right time to refinance your mortgage.

 1.    Do I have a good credit score?

If you have a great credit score, you’re more likely to get the best rates and lowest fees. Check your credit before shopping around. You can obtain one free credit report each year from

 2.    Do I plan on selling my home soon?

Depending on the type of refinance, it can take years to make back the points and fees on a new mortgage loan. If the refinance includes closing costs, you can pay thousands of dollars. Make sure you plan on staying in the home for a few years so the savings on monthly interest costs offset the closing costs.

 3.    How much is my home worth compared to how much I owe?

You can get a comparative market analysis from your real estate agent to see a list of comparable recent sales in your market. If the current market value of your home is less than what you currently owe, a refinance may not be right for you. In addition, if you owe less than $100,000, you probably won’t save much money by refinancing.

 4.    Are the costs and financial consequences worth it?

When shopping for a refinance, ask for a fees worksheet that will give you an idea of the closing costs. Also, keep in mind that you receive a mortgage interest tax deduction on your monthly payment. Refinancing will leave you with a lower interest rate, meaning less to deduct. Make sure you look carefully at the costs as well as the benefits of refinancing.