Monthly payments are lower on longer term loans than they are shorter term loans, but the interest rates are also lower. So, if you have a 15 year mortgage, you’ll end up saving more money, you just have to cough up more money each month.

Here’s what you need to consider:

1 – First find out the current mortgage rates. You can use the Freddie Mac weekly mortgage market survey to find out.

2 – Decide whether you want fixed-rate or ARM. Arms are cheaper, but riskier.

3 – then see what you could save when you do decide to refinance.