When is it wise to consider refinancing? There are several things to consider, depending on what kind of mortgage you currently have. For homeowners with fixed rate loans, today's low rates could help you substantially lower your monthly payment. So even though there are fees associated with refinancing, you will more than make up that money over the life of the loan. You may even be able to roll some or all of the fees into the refinanced amount, therefore reducing out of pocket costs. You should consider refinancing your fixed rate loan if the difference in your current rate and today's rate is 1% or more. Your banker can be helpful in making this decision since each situation is unique.

For homeowners with adjustable rate loans, the difference in the monthly payment may not be as much as it is when refinancing a fixed rate loan since your interest rate has probably been adjusted down as rates have fallen. However, with today's low rates it would be a good time to lock in a low payment for the life of the loan. This will provide stability in the amount of your monthly payment as well as save you money when interest rates start to rise again.

One other reason to consider refinancing is to consolidate debt. By refinancing your debt into your mortgage loan you can lower the interest rate you are paying on that debt. While this increases the principle amount of your loan, remember that interest on home mortgage loans is tax deductible and interest on consumer loans and credit cards is not.

For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage Corp. at

(800) 741-7813 or 910-692-6225.