Before you make any kind of purchase, big or small, you should do some amount of research to make sure that you’re getting a good deal for your money. When refinancing your mortgage, it’s absolutely essential that you do your research in order to avoid overpaying on your loan.

Here are some things to keep in mind when researching interest rates.

The goal of a mortgage refinance is to lower your finance payments by providing you with a loan that has a lower interest rate. If your financial situation has improved since you took out your original mortgage, you have a good chance of qualifying for lower interest rates on a mortgage refinance loan.

Two factors that will definitely affect your new interest rate are the length of the loan period and the type of loan that you are applying for. Typically, Adjustable Rate Mortgages will start you off with lower interest rates than a fixed rate mortgage, and loans with shorter durations will get you rates lower than a loan with a longer period. However, these general trends do not justify one type of loan over another.

Not every refinancing option is good for every situation. If you pick the wrong type of loan, you may overpay in thousands of dollars and could potentially lose your house if you can’t make your finance payments.

When shopping for refinance loans, it’s important to make your decision based on more than just the interest rates. Lower interest rates alone do not automatically mean the loan is the best option for you. Some mortgage programs offer low rates to their customers only to charge thousands of dollars in fees to recoup their profits. Considering the average homeowner refinances or sells every 7 to 10 years, it is not a wise decision to take out a high-fee loan strictly to receive lower interest rates.