Dear Dave: How do you feel about people refinancing their homes? Is it smart to refinance a house in order to have a lower mortgage payment?

- Anonymous

Dear Anonymous,

No, it's not. But it is smart to refinance a house to get a lower interest rate. By doing this, you pay off the home faster.

Think about this. Right now, with a 15-year fixed rate mortgage and one point paid, you can get an interest rate under 4 percent. That's awesome! Let's say you have a $300,000 mortgage, and you refinance from 6 percent to 4 percent. A 2 percent savings equals $6,000 a year, and that's $500 a month in interest saved. In my book, that's worth doing!

So, refinancing definitely makes sense in cases where you're going to stay in the home a long time and you get a lower interest rate. Good question!

- Dave