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With interest rates on mortgage loans reaching near-record lows, a lot of our customers have been asking us questions. Should I refinance? How will my payment change? How much will this cost? These are all really important questions.

Generally, the rule-of-thumb is you should consider refinancing if you decrease your mortgage interest rate by at least one percent. While this is a fundamentally sound principle, you should consider a number of other factors, too.

Whether you pay them up front, or roll them into your new mortgage loan, you will likely incur out-of-pocket closing costs. Ask your mortgage officer how long it will take to realize the true savings of this investment. If you have a longer loan, you will certainly save money over the life of your loan. But if you have only a few years left on your existing loan, this is a critical question to resolve.

While most loans today end up being sold to a national company like Citi, realize that they aren’t the people deciding whether or not to lend you money. Find out where your loan decision is being made. Most banks outsource the underwriting or decision-making, based on the ability to re-sell the loan. Others make the decision locally. It may not matter to you, as long as you get the loan, but with so many changes to lending practices in the last few years, you should understand how the process works.

These are only two important questions you should consider there are probably several more. And we also know that its sometimes tough to ask a lot of questions when it comes to your finances. But we believe you’ll make better decisions for you and your family when you have all the information you need. So, while today’s interest rates are certainly appealing, make sure its the right decision for you.