By now, you have probably heard of refinancing your mortgage. This is where, when interest rates drop significantly, you essentially trade in your old mortgage for a new one. The downside is that it costs you quite a bit of money. You have to pay for an appraisal and fees and closing costs just like you did with your first mortgage. It can result in you having money on hand for needed repairs or debt payoff, and a lower overall payment, which makes it overall a good idea when interest rates are significantly different than they were for your first mortgage. This is a current trend in today’s market.