refinance again?

I was just looking at the current mortgage rates and it appears that those "dream rates" that we were seeing not too long ago haven't strayed too far. With fixed rates standing at around 5.85%, it may make sense to try and save some money with a mortgage refinance. Of course, the real questions to be asked are:

- How much are you paying now?
- What can you save longterm in your payments?
- How much is the refinance going to cost?

I once knew a lady in Omaha who would refinance every time the rates dropped a little. After a few years, she had spent more in refinancing fees than she'd probably save on her payments for a very long time. To make matters worse, this was back when rates were hovering around 7% to 8%, so I'm sure she's really kicking herself now. But she had a broker friend who was just loving the commission.

A lower mortgage rate can sometimes mean the difference between living paycheck to paycheck and being able to put some money away. It can give you the opportunity to pull some equity out of your home to pay off higher interest rate loans and credit cards. They've even got "reverse" mortgages now that allow you to convert equity into cash, without having to pay it back until you sell or move out of the home. Long story short, read the fine print and do your homework. Get a good grasp on home mortgage basics and shop around.