If you own a home, chances are you’ve thought about refinancing lately.

Both 30-year and 15-year mortgage rates are some of the lowest in years, and refinancing may help you reduce your monthly payments. Recently, mortgage rates in Gillette have been as low as 3.25% APR on a 15-year conventional home loan.

If mortgage rates are lower than your current mortgage rate, you could reduce your monthly payments and the total amount of interest that you pay over the life of the loan by refinancing. However, there are costs associated with refinancing, which you may be able to roll over some of your closing costs into your new loan. But, if you’re not planning on staying in your current home permanently, you’ll want to make sure the costs of refinancing are less that what you’ll save over the time you plan to stay in your current home.

Refinancing your current mortgage might also make sense if you’re considering moving from one mortgage product to another. If your current mortgage has an adjustable rate, refinancing your loan to a fixed rate mortgage can lock you in at today’s low rates and likely reduce your monthly payment.

You also may want to refinance from a 30-year mortgage to a 15-year to build equity faster and reduce the total amount of interest you pay back over the life of your loan. However, your payments will most likely be higher even if you refinance at lower mortgage rate, so you’ll want to make sure you can comfortable absorb this extra expense into your monthly budget.

If you’ve already built up significant equity in your home and are ready to remodel, you may be able to access to value of your equity as part of refinancing your mortgage. A cash-out refinance may make sense if you are able to refinance at a rate lower than the rate for a home equity loan or other form of personal loan. With a cash-out refinance, you’re refinancing your mortgage for more than you currently owe and, in return, getting a portion of your equity back in cash. Cash-out refinances generally have a slightly higher mortgage rate because you are borrowing more money, but the current cash-out refinance rates are still likely lower than other types of personal loans.

Online calculators can help you explore if you may want to refinance, but to fully understand the costs associated, it’s important to speak with a lender about the costs and benefits of refinancing over the short- and long-term. To work with a lender who understands the local market and can provide you with rate information specific to our area, visit The Bank of Gillette.