With record low interest rates many people have been asking themselves lately if it makes sense for them to refinance their home mortgage. A rule of thumb that’s often thrown around is that if you can refinance and lower your mortgage interest rate by 1%, then you should consider doing so. As with many personal finance rules of thumb, this generalization leaves out too many other factors that should be used to guide your decision making. Here are some guidelines to help you figure out if refinancing your mortgage makes sense for your personal situation.
