A new tool to help you take advantage of current mortgage rates

Have you refinanced your mortgage yet?

Mortgage rates have been so consistently low that they've almost become part of the scenery, and that's the danger. If people start thinking of current mortgage rates as the norm, it increases the risk that they will fail to take advantage of them while they're so low.

Of course, there are many other factors besides current mortgage rates that go into the decision of whether or not to buy a house, but when it comes to refinancing, the decision should be primarily mathematical -- a calculation of whether or not refinancing could save you money.

3 different ways to refinance

Unfortunately, it's precisely the math involved with comparing mortgage rates that can scare people off, especially since it's not always an apples-to-apples comparison. After all, there are three major ways of structuring a mortgage:

• Traditional refinancing. This allows you to pay closing costs in cash, so that they don't add to the amount of your mortgage.
• Low-cash-out refinancing. When refinancing with this route, you add the closing costs to the amount that you are borrowing.
• No-cost refinancing. Here, you could avoid closing costs in exchange for agreeing to pay a higher interest rate on the loan.

Each method has it's own advantages and disadvantages, and the cost-effectiveness of each depends on the actual numbers involved.

Refinancing calculator to the rescue

A new refinancing calculator, Tri-Refi from HSH.com, helps you weigh all three refinancing options. While refinancing calculators are plentiful on the Internet, what's special about this HSH.com calculator is that it allows you to compare the outcomes of all three types of refinancing side by side.

If you are considering refinancing, try the Tri-Refi. If it makes the comparison of different refinancing options easier, it might help you make a decision in time to take advantage of current mortgage rates. Those low rates may be starting to seem normal, but they really, really aren't.

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