11 ways to save money now

Don't let this recession keep you down. Grab the opportunity to build a stronger portfolio, cut the fat from your budget, and give yourself a head-to-toe fiscal makeover.

4 of 11

4. Lose rate by refinancing your mortgage

• Read the full story

Rates on standard 30-year fixed loans are at or just below 5%, about the lowest they've been in decades. So if you're paying more than 6% on your loan - or have an adjustable-rate mortgage - and plan to stay in your home for at least a few more years, look into refinancing.

There are restrictions. Your new loan can't be greater than $417,000. In pricey markets like New York City, that figure goes up to $729,750. Rates on larger jumbo mortgages are a stiffer 6.4%.

Also, lenders are shifting back toward old standards. Your monthly mortgage, insurance, and taxes shouldn't eat up more than 31% of your monthly income, nor should your total monthly debt payments exceed 43%.

Before you forge ahead, make sure refinancing is worth it. Use the refinance calculator to run through your figures.

NEXT: Juice your credit score an extra 20 points

Last updated May 08 2009: 10:58 AM ET

Email | Print |

Digg this story |

RSS

• Test your financial health

• Blog: Money's Two Cents

• 3 steps to financial security

More Galleries

8 great summer vacation deals

Want the perfect summer getaway? MONEY searched for destinations with balmy weather, unique attractions, fun stuff to do, and great deals from four different categories: beach, mountain, culture and city. More

Best ways to catch up on your retirement savings

Even the most financially responsible people make a few mistakes or run into obstacles along the way. These tips -- from cutting taxes to selling securities -- can preserve a safe retirement. More

Nearing retirement? Fortify your finances

Your financial goals are within reach. Here are tips and tools to make sure you achieve them. More

Special Offer