In the current economic climate, with credit card and personal loan interest rates still relatively high and mortgages still at a very reasonable rate, it can often make sense to roll your outstanding debt and mortgage into one lower monthly payment. This strategy lets you take advantage of the lower rates and put more money back into your pocket each month. Many mortgage brokers and banks are now offering this option, and many will subsidize any penalty clauses that you may have with your existing lender. Your existing lender may even waive these fees if you lock back in with them for a longer term.

There are a couple of options if you are interested in lowering you mortgage payment when refinancing. The first choice is to find a low mortgage rate, either adjustable or fixed. Adjustable rate mortgages will give you the lowest payment, at least at the beginning of your home loan, but fixed rates will give you the security that they won't rise in the future.

The other option is to extend your loan term, especially in the case of your second mortgage, which usually is for five to ten years. When you consolidate your loans to a thirty year loan, you stretch out your payment schedule for principal, so you have smaller payments over a longer period of time. Combining both mortgages will qualify you for lower rates than if you were to refinance separately, and you will see additional savings on application fees and closing costs.

Once you determine the type of loan that you want, you need to shop around for a good lender to save yourself even more money. Lenders vary in terms of closing costs and interest rates, so it's best to do your homework and compare to find the best lender for you.

When dealing with a lender, ask for a personalized loan quote based on your general information, and then with more accurate numbers, you can make an informed choice as to who has the best financing for you. Making the choice to refinance your mortgages, loans and credit card bills will result in one low monthly payment that will save you thousands in interest charges.