Time to Refinance? 4 Questions to Ask

Five years ago, New Jersey homeowner Bill Allard bought a house with a 30-year fixed mortgage at a rate of 5.75 percent. But with mortgage rates now below 5 percent, he's wondering if he should refinance his loan. "I could get a lower rate and my monthly payments will be less, but will I come out ahead in the long run?" he asks.

Mortgage rates are at rock-bottom lows these days, meaning it's a good time for many homeowners to refinance their mortgages. But it's not always the best financial decision. In some cases, you may be better off sticking with your current mortgage.

The best way to determine whether now is the right time to refinance is to first ask yourself these four questions.