First of all, if you have an adjustable mortgage rate, your current interest rate could go up as much as 3% when it expires, increasing your monthly payment hundreds of dollars. And that’s just to start! You can expect another increase in another few months. But if you refinance your current mortgage to a low, fixed rate, your principle and interest payment will never go up. A straight refinance of this type, whether you’re going from an adjustable or fixed rate to a lower fixed rate, with no cash out (except for the closing costs), will grant the lowest APR.

Some believe that if you’re going to refinance your current mortgage, you might as well go all the way and wipe the slate clean, paying off all credit cards, car payments and even home equity/second mortgages in the process. Besides gaining the tax advantage of deductible mortgage interest paid, the interest rates for refinancing as typically significantly lower than other types of credit. In the end, you could save hundreds of dollars right off of your bottom line each month, freeing up extra money to put into your savings account or other investment sources.

You can’t forget about home improvements, especially with the rising costs of heating and cooling your home. New, high-tech, double-paned windows will not only help to keep your home’s inside temperatures indoors, they will increase the value of your home. Adding new or upgrading insulation will also help. And don’t forget about expanding your deck! Even though it won’t do a thing to keep your energy costs down, it will definitely add a few more dollars and a bit of fun to your home.

Finally, my personal favorite is the skipping a month of payment! The reason for this is because you actually pay for the month that just passed. For example, say that you refinanced your mortgage on July 31. There is no payment due in August! Your first payment would be due September 1, as you would pay for the previous month. But, if you refinanced your mortgage on the 15th of July, you will prepay interest at closing to cover you until the end of the month. Your first payment still wouldn’t be due until September 1.

Mortgage rates are again on the rise, and the only people that know when they will come back down are those with a crystal ball. To protect yourself and your home, refinancing to a lower mortgage rate either from a fixed or adjustable rate to a comfortable monthly payment will save you money (and headaches) in the long run.