If you have a first and second home mortgage you may be able to refinance them both into one lower monthly payment. Doing so can potentially save you thousands of dollars in interest charges. Refinancing both mortgages allows you to get a lower rate than refinancing them separately, which is what makes it a good idea. Beyond that you’ll be able to save on application fees and closing costs this way.

To lower your mortgage payment when refinancing think about it the same as an initial mortgage. Find the lowest rate mortgage you can. However, be careful of adjustable rate or interest only loans that may have initial low rates, but will rise in the future. Sometimes a fixed rate that is a bit higher, but indefinitely more stable is the bestter choice.

You can also take out a loan for a longer period of time. If you consolidate to a 30-year load, for example, your payments will be smaller. The downside is your interest rates will likely be higher. Don’t forget to shop around for a good lender. Look into the different closing costs and interest rates. Use the APR to compare the loans and see how each of them measure up.

Finally, if you are planning to move or refinance in the near future avoid high closing costs. Even if they have a lower rate it will take you several years to see savings when you pay higher closing costs.