There are different reasons to refinance, including several ways to save money, but consider how long you may keep your home, because the overall amount of savings from your refinance home loan can vary depending on the loan program, and the costs. 

A good way to save money if you plan to stay in your home for a short time, is to use a zero point, or a zero cost refinance home loan, because if you move or refinance your home again later, you won't be wasting any money on costs. Another option is a 3 or a 5 year mortgage refinance, with a low initial fixed rate.

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For refinancing with a high loan to value, or lower credit scores, also see FHA refinance loans.

Other short term refinance loans include a 6 month, or 1 year ARM. To attract borrowers, lenders provide adjustable refinance rates that start lower than fixed refinance rates. Every 6 months or 1 year, the rate is adjusted based on the index plus the margin, subject to periodic and lifetime rate caps. The index can be based on the 1 year T-Bill, Cost of Funds, Treasury Average, or LIBOR. The margin is a fixed number set by the lender, which can range from 2.25 to 3.00.

If you want a cash out refinance, but you currently have a low interest rate, you may consider using a home equity loan or a second mortgage. If you are looking for lower payments, refinance on a 30 year fixed rate home loan, however, if your goal is to keep your house until it is free and clear, you may want to consider a 15 year fixed refinance loan.

When you compare mortgage rates, the monthly payments will be higher, but the principal reduction is accelerated, so you can drastically reduce the amount of interest paid over the life of the mortgage.

For example, the monthly payment for a $200,000 refinance home loan, for a 15 year term would be almost $500 per month more than a 30 year term, but it would also save about $128,000 in interest payments. Technically, you could achieve similar results on a 30 year mortgage by sending an additional amount each month to be applied to the principal balance, if you have the discipline.