Even though interest rates are starting to go up, they’re still relatively low at this point. Many people are going back and forth as to whether or not they should try to refinance their mortgages. Here are some pros and cons of doing either action.

Let’s first look at the pros.

One pro, of course, is that your monthly payments would be drastically reduced. Depending on where it is now, you could literally save a few hundred dollars a month, which wouldn’t be a bad thing.

Another pro is that, depending on how long you’ve been paying on your house, you could end up with a nice little cash windfall that you could put to something else. Paying down some other bills or doing some home improvement projects aren’t unheard of. Some people have even taken vacations with the extra money. Of course the smart thing would be to put it back into the payments to see if you can get an even lower payment, but most people don’t think like that.

Now let’s look at some cons.

The first con is that if you’ve already been paying on your home 10 years or more you start all over again. What you might be able to do is roll over into a 15 year plan at a lower interest rate, which will probably cost you a little more than what you’re paying now depending on what your previous interest rate is, but if you could get even slightly lower or the same amount it might be worth looking into. Otherwise, you’re just adding time onto your mortgage.

Another con is that you might not get the change, in which case you now have a negative tick on your credit report. Just because I think credit scores are worthless doesn’t mean that everyone else thinks so, which means this is a hard one to consider.

These are the major decisions you must consider before deciding to go one way or the other. Most analysts will tell you to go for it; I’ll just say think about it seriously before taking the plunge.