Probably the first thing you want to consider is what type of loan you have now. If you have an adjustable rate mortgage (ARM), then you may seriously want to think about changing to a more stable form. It was very popular to get an ARM a few years ago, because the economy was good, but recent changes means that you need to think about refinancing. Of course, only you know what you have in the way of interest now, but no one knows if the times will get better or not. If interest rates do rise, then it will be reflected in a higher payment for you.
By changing to a fixed rate mortgage, you have the option to be able to enjoy the better rates you want - and for the rest of the mortgage, too. Your payments will remain the same throughout the remaining years. Your payments with an ARM, however, if the economy turns sour, will only raise to undesirable heights - and you may face the possibility of losing your house.
The best time to make the change first demands that you consider how long you expect to stay in your house. The reason for this is that if you refinance, there will be the usual closing costs and other fees. This means that you will need time to be able to recoup your losses that, typically, would take at least three years. So, in order to make refinancing a wise choice, you must be going to stay for awhile.
Another major factor, or course, is whether or not the interest rate is just right. Most financial advisors suggest that there should be at least a 2% difference in the rates. However, you can still save money if it is around 1%, and if you plan on staying in your present home.
Going from an ARM to a fixed rate mortgage may be just plain good advice - even if your interest rate difference is not even there. If, for instance, you see that the rates are going up, then you may quickly want to refinance and get into a fixed rate mortgage quickly, before your payments get out of reach.
In all cases, be sure to compare the offers of several lenders before you sign on to any deal. Be careful to especially compare the various fees that may apply and be ready to try to negotiate for an even better deal. That way, when the deal is complete, you'll come away knowing that it was a good time to refinance and you can be happy with the deal you received.
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