If you are considering refinancing and want to know if refinancing will be worth it, consider if your interest rate is at least 2% higher than the going rate you will be saving money. Remember there are expenses involved with refinancing; less than 2% and it might be a while before you break even.

There are of course other reasons to refinance; cashing out equity in your home is one such reason.

You may be sitting on the fence when it comes to refinancing your mortgage because of a possible move in less than five years. It does not make sense to commit to a 30 year mortgage if you have to turn around and sell in five years right? If you think a move might be coming up in your future you can still take advantage of low interest rates by using a hybrid mortgage loan.

A 5:1 hybrid mortgage for example offers a low fixed interest rate for the first five years. After 5 years the interest rate becomes adjustable and your lender will adjust the interest rate every year after that. Find a lender that does not have prepayment penalties and you can sell the home after 5 years and still benefit from lower interest rates.

If you are refinancing for the long term you might want to consider prepaying points in exchange for a lower interest rate. Points or “discount points” as they are often called, represent 1% of the loan amount and are paid at closing in exchange for a lower interest rate. Many lenders require points; however, you can use points as a bargaining chip with lenders that do not in exchange for better a better interest rate or even more favorable terms. To learn more helpful tips that could save you thousands on your mortgage loan, sign up for a free guidebook to mortgages and mortgage refinancing using the links below.

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Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker.

He is the owner of Mortgages Refinance Advisor, a mortgage help site devoted to saving homeowners money with a free guidebook Mortgage Refinance: What You Need to Know.

Sign up for your free guide today at: http://www.refiadvisor.com