Thirty-year home loans are running under 5% right now, which is down from 6.4% as recently as last summer. These rates are lower than they have ever been and many homeowners are flocking to refinance their homes. In fact, the boom has created a new source of business for mortgage brokers who have struggled with the slower housing market.

So, when should you refinance your home? The first thing to consider is whether or not you even need to refinance your home. Those who plan to pay off their loan over the next few years have no reason to refinance because they won’t be paying monthly bills long enough for the savings to cover the costs, which often reach around $2,000 or so.

On the other hand, those homeowners with an adjustable-rate mortgage should strongly consider refinancing. ARMs are a very risky mortgage because interest rates could go higher and your monthly payments could skyrocket as a result. Refinancing into a 30-year fix-rate loan may not cut monthly payments much by now, but it would reduce risk over the long-term.

As a rule of thumb, homeowners should look for a payback in a couple of years. Generally, if you can earn the costs of earn the costs back within two or three years, and it’s a home that the homeowner’s prepared to own for much longer, then refinancing is a good idea.