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Mortgage rates are at near-record lows, and the low rates have led to an uptick in refinancing activity.

"Thirty-year fixed rate as low as 4.375 [percent] and no points, 15-year fixed rate [is] 3.78 [percent] and no points and adjustable rates in the 'mid-threes,'" says President Melissa Cohn of the Manhattan Mortgage Company.

The Mortgage Bankers Association says the level of refinance applications has increased to a new 13-month high. Refinancing allows homeowners to lower monthly payments by hundreds of dollars, shorten the term of the mortgage and/or switch from an adjustable-rate mortgage to a fixed one.

While it is an attractive time to refinance, experts say the move is not for everyone. Homeowners who plan to move within the next two or three years may want to stick to their current mortgage.

"You can pay 3 percent of the cost of the loan just in refinancing fees, origination fees, the appraisal, pulling the credit score, having your title insurance. So all those things will add up," says Nick Timiraos of the Wall Street Journal. "You want to make sure that if you're going to save $100 a month but you're going to pay $3,000 in fees, well, you want to make sure you're going to live there for at least 30 months so that you make up the amount that you're going to pay to refinance."

For homeowners who have been living at their home for a long time, refinancing may hurt their wallets.

"If you've had your mortgage for a number of years, your monthly payments are probably primarily principal at this point," says Cohn. "If you refinance, you're going to add on years and years of interest payments, which may take away the benefit of refinancing. Because in the long run, you'll end up having paid more money over the life of the new loan."

Those who are planning to refinance should be prepared for stricter lending standards. Only a high credit score and a secure income will ensure premium rates. Also, homeowners should have sufficient equity in their homes or else have to put more money down.

"Most banks today when you are refinancing require that you have at least 20 percent equity in your property. With property values having fallen over the course of the past few years, many people are no longer with the equity position that they had when they purchased the property," says Cohn. "There are a lot of people that brought with 10 percent down who may not have the 20 percent equity in order to be able to refinance."

So before spending the money to refinance, run the numbers.