What's the interest rate on your home mortgage? If you have a fixed rate loan, and it's several years old, you may be paying 8-9% or even more. If you have an adjustable rate loan, chances are it has also risen above the 8-9% range. If so, it may be time to refinance.

There are costs to refinance, so it is wise to make some calculations before rushing into a new loan. For example, let's say your loan balance is $100,000 and the closing costs to refinance are $2,000. The interest savings would be about $1,000 per year if you move down from a 9% to a 7% loan. Thus it would take two years to recoup your $2,000 closing costs.

If you plan to remain in your present home for at least another two years, it may be worthwhile to refinance. After the second year, the $1,000 per year in interest savings would go into your pocket. But wait. There may also be another benefit.

Say your loan is already ten years old, and the balance is $100,000. That means your original payment at 9% was $901.18 per month. By refinancing your present balance over a 30-year period at 7%, the new payment would drop to $665.30, a new cash reduction of $235 per month. Ask your agent to show you the benefits of refinancing..