When you have a current mortgage loan that you are paying on, it is relatively inevitable that you will eventually want to refinance your mortgage loan. That is going to take some real consideration beforehand. When you're making your decision, there are several things to keep in mind. First of all, you need to know that even a small rate cut can pay off quickly. That's because you can easily find mortgage companies that are dying to waive routine refinancing charges such as application, appraisal and legal fees just to be your loan representative. Of course, in exchange for low or no up front costs, you'll have to accept it at a rate that's a bit higher than the current one. Secondly, if you are planning to stay in your home for at least three to five years, it may make sense to pay points (a point equals 1% of the loan amount) and closing costs so that you can get the lowest possible rate. It takes a bit of research to understand it, but the effort is worth it. Thirdly, you can avoid paying out cash and still get a low rate if you add the points and closing costs to your new mortgage. This doesn't necessarily mean that you will offering to take on a great deal more debt like it may sound. For example, if you've had your current mortgage for at least three years, you've probably reduced your balance by several thousand dollars by now, so you may be able to tack your closing costs onto your new loan and still end up with a mortgage that's smaller than your original or current one as well as getting it at a lower rate and lower monthly payment. If you are considering refinancing your current loan, you do not necessarily have to go through your current company so you can shop around to get the best rates possible for your present situation. After all, if you can get a better rate somewhere else, why wouldn't you go out of your way to do so?