Waves of homeowners are rushing to refinance their mortgages. And no wonder: Long-term rates have collapsed to historic lows. Thirty-year home loans can run as cheap as 5% right now – down from 6.4% as recently as last summer. By any long-term measure, today's rates are a great deal. But before you join the party, ask yourself: When does it make sense to refi? If you are planning to move or even pay off your loan within a year or two, refinancing probably doesn’t make sense because you won't be paying your mortgage long enough for the savings to cover the costs. On the other hand, in some circumstances, refinancing is pretty much a slam dunk. If you plan to stay in your home for years, and you are currently in an adjustable-rate mortgage, you should strongly consider a refi. ARM’s can be incredibly unpredictable – the financial equivalent of Russian roulette in today’s economic market, but with multiple bullets. Refinancing into a 30-year fixed-rate loan may not cut your current monthly payments by much, but it gets rid of the risk that those payments may suddenly skyrocket. Generally, if you can earn the costs back within two to three years, and it's a home you're prepared to stay in for much longer than that, it's usually a good thing. To help you determine whether or not refinancing is a good fiscal decision for you be sure to seek out trusted and respected financial advisor to help you navigate the overall costs, savings and returns before you decide to make any changes.