Hi everyone and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm your host Laura Adams. This week I'll be answering a voicemail question about how to

know if you should refinance your mortgage.

Hi money girl I have a quick question about taking a home mortgage.

If I were interested in getting a lower interest rate on my home by refinancing my mortgage,

but I still plan on moving out of my home in about two or three years,

does it actually make sense?

What type of things would I want to actually consider before taking the plunge and refinancing.

Anyways, thank you, and my name is Ben.

Ben, I appreciate you calling in with your excellent question.

It's a perfect time to talk about refinancing because right now interest rates are low.

An interest rate is simply the cost of money.

Rates in the U.S. fluctuate according to the monetary policy of the Federal Reserve, which is our

central bank.

When interest rates are low, money's on sale.

As strange as that sounds, banks should display a big banner on their front door or website that reads,

bargain-basement prices on dollars, or we sell money cheap, because that's exactly what happens

when interest rates go down.

Low rates are great for borrowers, but not so good for lenders.

Back in Podcast 150, I discussed how low interest rates put a squeeze on your savings and I gave tips on

where to find the highest rates. When you put your money in a savings account,

money market deposit account or a CD you're the lender.

...