If you have a mortgage then the question of refinancing has likely come up over the past year or two. This is particularly an issue if you purchased your home during the early part of this decade when interest rates were at near historically low figures. Even more critical is if the loan you took out was a variable rate mortgage ? chances are it is about ready to start adjusting and when that happens can you afford the higher payments?

There is one easy way to determine if it is time for you to refinance your mortgage: your new payments are going way up and switching to a fixed rate mortgage can save you some cash.

Instead of scratching your head wondering what is involved, Google a search for a mortgage estimator or mortgage calculator and run the numbers. Side by side comparisons will show you what the best deal is: some calculators will allow you to plug in your original mortgage, with side-by-side comparisons of two additional mortgages. You'll be required to enter in your current mortgage interest rate, your mortgage balance, years left on your loan and then plug in a new mortgage, with the new rate and terms too. Once you tabulate all of the figures and find out what your rates will be, then you'll be empowered to take the next step.

Some consumers however have learned a rude lesson when calculating their mortgages: even the fixed rate mortgage could still be hundreds of dollars per month higher than the original variable rate mortgage. Worse still, when seeking financing they learn that no mortgage company will touch them: in other words they are stuck with the original mortgage with the ever climbing interest rates.

So, before seeking refinancing visit AnnualCreditReport.com to get copies of your credit reports and credit scores. The credit reports will be free, but you'll pay a nominal fee for the credit scores. The higher your credit scores, the better your financing deal will be. If there are problems on your reports then simply fix them before applying for a new loan.

The worst case scenario is this: you can't refinance and you can't afford the higher payments. If this scenario works out for you then you have only one choice: put your home on the market and hope for the best. Otherwise, foreclosure and a wrecked credit score will soon follow.