Chances are, if you’re looking to refinance anything, it’s your home loan. The mortgage is usually the biggest and most important bill that a person pays each month.

• Your first question should be: why am I considering refinancing?

It’s a question that you have to ask. Your financial situation may have taken a turn for the worse recently (most people’s have), and you’re looking for ways to get it under control. With some of the lowest interest rates ever, refinancing may be a great way to cut the monthly costs or even ‘fold in’ (consolidate) some other debts for a single, manageable payment!

• Your next step: Understand the Game

Well, it’s no game, but you get the idea. You owe it to yourself to learn at least the basics (rate, term, loan types, amortization, equity, etc.). Knowledge really IS power, especially when it’s knowledge about the single most important investment in your life!

• Then it’s time to Shop for Lenders and/or Brokers

If you haven’t completed Step 2, you may not know the difference. See, I told you knowledge was important! Seriously though, you’ll definitely want to shop around, but first you’ll want to know what to look for. Luckily, this is one area in which I can make some pretty specific recommendations that have little to do with your unique circumstances (in other words, for once I won’t just say “decide what’s right for you”).

• Next step: Weighing All of the Options

Chances are, you’ll need to repeat Step 2 again. No matter how much I think I know when I go to talk to lenders, they can still surprise me with something new (or, at least, some recent changes to the old way of doing things). You’ll go in thinking that you know exactly what’s best, and end up coming back out with more decisions to be made.