With interest rates at near historic lows (again), refinancing might be on your radar, which means you may be able to swap out your old, higher interest rate for a new one with lower rates. But will that put you in a better financial situation?

Today borrowers can snag a 30-year mortgage for 3.81% and a 15-year loan for 3.16%, compared to 4.46% and 3.91%, respectively, just a year ago, according to Freddie Mac. Before jumping into refinancing, ask yourself these four questions to decide if it makes sense for you.

Question No.1: What are my goals?

Low interest rates alone aren’t a reason to refinance. But depending on what you want to do, refinancing could be the answer.

Question No. 2: Is refinancing worth the cost?

To determine how much value you can get from refinancing, do some simple math.

Question No. 3: Can I afford the closing costs?

Here at www.loanontime.com you may qualify for no closing cost no point cost refinance rate.

Question No. 4: What are the refinancing pitfalls?

Like anything, refinancing has its downsides. Take “cash out” refinancing, which lets you refinance the remaining amount of your mortgage in addition to more money, provided you have enough equity in your home. Financial advisers are split on whether this a good idea, depending on what you want to do with the money.