Low rates are not the only reason to refinance. You need to think about the costs of the refinance itself and how long you are going to stay in your current home.

As a general rule of thumb it is not worth refinancing unless you can do so to a rate that is a full point lower then your current rate.

Before you refi ask yourself how much is it going to cost?

If it costs you $5000 to refinance your home and that only saves you $100 a month. It will take you over 4 years to see any benefits of the refinance.

hope this helps...good luck

Also make sure that you have enough equity to refinance. I had to end up getting a loan modification because we were upside down

I didn't think we were, but too many foreclosures in the area!

Also consider that you reset the clock to 30 years from payoff. You will never pay off a mortgage if you continually refinance. Also, in the early years of a mortgage, almost all the payment is interest, and very little principle. This shifts slowly. Try to look at an amortization schedule to get a feel for what you pay now per month towards principle, versus what you'd pay with a new mortgage at the lower interest rate.

Refinancing at a (much) lower interest rate will help you to pay off your mortgage earlier. Use the monthly saved amount of money due to lower interest to make extra payments to pay off the principal.

That will definitively help to pay off your mortgage years earlier. And when the principal gets lower because of the extra payments, you have to pay less interest so more money is available to pay off even more, and so on.

This effect is called snowballing, as mentioned in many posts on this forum. You will benefit from this step by step approach to get out of debt.