News 12 at 6, October 27, 2008

EVANS--A major reason for the current economy has been bad home loans.
Turns out lots of people have them. Refinancing could help some homeowners.

If you're in an adjustable rate mortgage or your payments are too high, refinancing your loan can be a good option. But there are some things you should know before you take that plunge.

Tyler Brooks came to Augusta a year and a half ago to start his own oil change business.

That's a big undertaking on its own, but he also needed a house. So he got an adjustable rate mortgage to help make ends meet.

"It was what I had to do to get into a home." he said.

Before long, Tyler wanted out of that loan. So he made some calls and found something he liked. A new fixed rate loan at a way lower rate than his old one.

"Hopefully close to a point." he said.

That could add up to a savings of tens of thousands of dollars over the life of the loan. It's a strategy that could work for you too, but it's not for everyone.

Here's some things to ask yourself.

1. How long do you plan on living in the house? If it's only 2-3 years, it may not make sense.

2. Am i really going to save money by doing it?

3. How is my credit? You may be surprised to hear you don't have to have great credit to refinance.

4. How many points can I save on my interest rate?

If those sound good to you, experts say now may be the time to re-fi.

"Rates are at a point now where you'd be crazy not to refinance." said Andy Passmore of The Mortgage Center.

Something Tyler Brooks knows all too well.

"Blew me away that we could do that right now." he said.

Property values around here haven't dropped much unlike in some bigger cities. That means not as many people upside down in their homes and it also means a lot more opportunity for refinancing because most people don't owe more than the house is worth.