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By Peter McDougall - BankingMyWay.com

For the past nine weeks, mortgage rates have plummeted -- they're down close to 1.5 percentage points since October at an average of 5.10%, and 0.7 points for a 30-year fixed-rate mortgage, nationwide. But before rushing off with dreams of refinancing your mortgage at a new low rate of 5%, ask if it is the right move for you.

First, what's behind this drop in rates? Most analysts point to the Federal Reserve's plan to buy $500 billion worth of mortgage-backed securities from Freddie Mac (ticker: FRE), Fannie Mae (ticker: FNM) and Ginnie Mae as the cause of the ongoing rate drop. And the most recent press release from the Fed announced it intends on buying the securities starting in early January and continuing into June. (For those keeping score at home, this plan is separate and distinct from a similar U.S. Treasury effort to buy mortgage-backed securities, announced around the same time.)

That means you should have some time to decide whether refinancing makes sense for you. Here are a few things to think about:

Rates vary across different parts of the country. For instance, in Vermont, KeyBank (ticker: KEY) is offering an interest rate of 5.875% for a 30-year, fixed-rate mortgage, whereas U.S. Bank (ticker: USB) is offering the same mortgage for 5.25% in Colorado.

Lower rates don't necessarily mean looser standards. To qualify for the best rates, you'll need to have tip top credit and be in a strong financial position. And though you may not qualify for the 5.10% national average, knowing what rates are available in your area can help get you a better rate. (For more on this, read here).

Refinancing costs money. The money you save by lowering your interest rate needs to be enough to cover the few thousand dollars in fees -- such as appraisal and loan processing fees -- for refinancing to make sense. If you plan on moving in the next couple of years, you may not have enough time to recoup those upfront costs.

For more rate offers in your area, go to BankingMyWay.com and enter your ZIP code.

—For more ways to save, spend, invest and borrow, visit MainStreet.com.