It is no secret that mortgage rates are now at new historical lows. This means that those who are able to take advantage of refinancing right now can lock into big savings. Even small changes in your interest rate realized by refinancing now could not just mean saving a few hundred dollars each month but easily add up to some pretty large financial gains if you know what to do with it.

A few years ago at the height of the housing market boom many homeowners found themselves stuck with rates in the 7% range, and many even much higher. The principal and interest payment on a $300,000, 30 year mortgage is $1,995.91 per month. Refinancing now at 4.25% would mean a new payment of just $1,475.82 a month. This results in a savings of $520.09 each and every month! What if your rate isn’t that high? Even if your current rate is 5.25% dropping it down to 4.5% with a No Cost Refinance would still save you $157.84 every month.

For some of you this may not seem like a significant amount of savings. However, if you know what to do with it you could find this one of the best investment moves you could ever make. You could take the savings and pay off your mortgage 5 years earlier! That’s 5 years of mortgage payments saved! Or you put your monthly savings into a tax free ROTH IRA each month. At a 5% rate of return compounded monthly this would add up to $131,360 saved up after 30 years! Just imagine what kind of wealth you could build if you could achieve a 10% return or higher.

There are other changes of you can take advantage of when refinancing that can also translate into massive savings. Using the example of a homeowner with a current $300,000 mortgage at 7%, using a no cost refinance to switch to a 4% interest 20 year loan would knock years off of your loan. This not only means the luxury and peace of mind of enjoying living in a home that you own free and clear but also means monthly savings on your payment and saving $282,220.85 over the life of the loan!

So if you could use the extra breathing room that lowering your monthly mortgage payment offers or you could use an extra couple hundred thousand dollars for retirement, sending kids to college or just for traveling the globe then perhaps it is time to consider refinancing. Even if you do not need the extra money surely you can find a worthwhile charity who could make much better use of your money than a rich CEO of an investment company in New York or Europe. Instead of just applying blindly to online mortgage websites or focusing just on the rate or payment look for a Certified Mortgage Planner who can really help you find great ways to save and build wealth by using mortgage financing wisely.