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Erik Pearson's fixed-rate mortgage is a manageable 6.375%. But he knows he could do better. The homeowner from Boston, MA, is shopping rates in anticipation of refinancing his 30-year loan. "It feels like the right time to pull the trigger," Pearson says.

With rates near historic lows, hovering around 5%, Pearson is in a good position to see a healthy savings on his mortgage payments and a quick recoup of the closing costs on the refinancing. Like many homeowners, he is paying attention to forecasters who say the window of opportunity could be closing, as rates seem poised to creep higher in the months ahead.  It is also a perfect time for a new buyer to make a move, when you consider the $8000. tax credit that can also be taken advantage of until April 30th, 2010.

"The indexes used to calculate payments for mortgages adjusting today are all artificially low, based on the actions of the Federal Reserve," says Jim Sahnger, vice president of Palm Beach Financial Network in Jupiter, Florida. "When the programs end over the next few months, all rates will rise -- and in some cases, their increase could be dramatic. If you'll have the need to refinance anytime between now and over the next 18 to 24 months, I would consider doing so now."

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Daniel Penrod, senior industry analyst for the California Credit Union League in Ontario, California, believes that once rates start moving, "they're going to trickle back up to the 6's and closer to 7%."

How long do you plan on your staying in your home? How many years are left on your mortgage? What's your current interest rate and equity level? Those are the key points bankers need to know from clients, says Jason Bonarrigo, senior mortgage banker at Wells Fargo Home Mortgage in Boston.

In other words, the time to lock in a low rate is now -- only if the circumstances are right. For starters, be sure your credit score is in check. Resolve any errors to earn the best possible mortgage rate. The difference of just a few percentage points in your credit score can translate to hundreds, and sometimes thousands, of dollars a year.

If you're ready to take the next step, here's what you need to know on each type of loan.

Why now:

To get a sense of what refinancing will cost -- and what (if anything) you'll save -- search online for a refinance calculator, and plug in your numbers. Then talk to a mortgage professional. Most offer free consultations. Homeowner Erik Pearson figures that his refi could save him about $150 a month. "It'll be a relief to have that extra money in my pocket."

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