The housing market has been notoriously troubled over the past several years and, for many homeowners, a bad market means lost value. If there's a bright side to the lack of demand that has rippled through the real estate industry, it's the low mortgage interest rates that have accompanied the market changes. The term "buyer's market" is thrown around frequently, but low bank mortgage rates don't just benefit buyers. There has rarely been a better time to refinance and while bank mortgage rates may rise over the next year, they're currently low enough to make homes more affordable across the United States.

When homeowners decide to refinance, they essentially transfer debt from a mortgage to a new mortgage, taking advantage of low bank mortgage rates in the process. A household's mortgage payments may drop considerably after refinancing, which can give a family some serious financial breathing room. Homeowners can also borrow against equity in a home while refinancing, freeing up money for home repairs and improvements.

Refinancing is not free. There are closing costs and there may be other costs to consider, but some banks offer to handle part or all of these costs under certain circumstances. The closing process is identical to the closing process for a new home, but it's usually faster. Most homeowners are able to refinance in several weeks.

Even so, there may be other challenges. In order to take advantage of low mortgage interest rates, homeowners need to have considerable equity. In depressed markets, this can be a major challenge. Banks won't allow refinancing if a homeowner owes more than the value of his or her property under most circumstances. HARP and similar programs can provide help for some families who are unable to refinance traditionally due to an underwater mortgage, but it's important to note that these programs are only available for families who have not fallen behind on their mortgage payments.

Still, most homeowners can benefit significantly from low bank mortgage rates. Going from a high-interest to a low-interest loan can mean a lot more extra money each month for a household. Refinancing can also make it easier to build up equity and can even allow homeowners to pay off their mortgages more quickly. With low bank mortgage rates nationwide, many homeowners are getting relief from high home ownership bills.