How much you pay on your mortgage each month is directly related to your interest rate. If your first mortgage has a fixed rate, you can easily compare it to current mortgage rates and know with relative certainty whether refinancing now makes sense. In the absence of any other pressures, as long as the rate you have on a fixed rate loan is lower than current rates, you should probably stick with it. On the other hand, if you have an adjustable rate mortgage (ARM) and rates are rising your payment will also be increasing. In this case, consider how much rates will climb and how much more you’ll be paying per month. You may consult with a financial planner or loan officer to get their opinions on market trends. With their advice, you can decide if refinancing to a fixed rate now is more beneficial in the long run.
Sometimes, lowering your mortgage payment is not primary focus. Are you thinking of paying down some of your high interest debt? Dreaming about a newly remodeled kitchen or bathroom? You can get cash out through a mortgage which will allow you to draw against the equity in your home without taking out a second mortgage.