Interest rates are currently at an incredibly low level. In fact, many experts estimate rates may dip into the high three-percent range in the near future, even on 30-year loans. If you decide to refinance, you may choose to do more than simply lower your monthly payment.
Say you currently have a 30-year mortgage. You could choose to refinance for 15 years, taking advantage of very low interest rates: In some cases a 15-year loan may carry an interest rate .5% less than a 30-year loan. Not only will you save thousands in interest payments over the life of the loan, but you will also build equity more quickly.
If improving your cash flow is more important, stick with a 30-year loan. Lower interest rate loans equal lower monthly payments, freeing up cash to pay off other loans, pay for college whatever you decide.
Just make sure when you refinance that you make the right decision for your financial needs. Take advantage of lower rates in the way that is best for your family.