Refinancing activity increased more than 17% as of the week ending August 13. According to the Mortgage Bankers Association, that’s the highest level in 15 months.

Lower interest rates are behind this renewed interest in refinancing as homeowners realize the opportunity to lower their payments. This, then, will reduce their monthly expenses. Many are also choosing fixed-rate loans and for a shorter term. For those of you who remember the 70s when interest rates were double digits, compare those times to now. A 15-year fixed-rate mortgage was at a record low of 3.9% last week and a 30-yer fixed-rate mortgage averaged 4.42%. Adjustable-rate mortgages were almost non-existent, with more than 95% of the refinances being fixed-rate

Unfortunately, for a variety of reasons, some of those who could benefit aren’t taking advantage of the lower rates – and the resulting lower house payments. Two key reasons for this are tougher credit score requirements and tighter lending conditions.

So, is now is the right time for you to consider refinancing? A major question is if it is worth it to pay the fees that can range from 3% – 6% of your outstanding principal. This includes homeowners insurance, along with application, appraisal, inspection, closing and other fees. Additionally there will be loan origination fees to your lender or broker. Therefore, if you don’t plan to remain in your home for more than a couple of years, you will most likely find you’re better off not refinancing.

Not sure what to do? A broker who has your best interest in mind will help you make the right decision.