Refinancing   When you're making your refinance decision, there are several things to consider, even a small rate cut make sense. That's because we easily waive closing costs in exchange for no up-front costs. Or, You can avoid laying out cash and still get a lower rate by adding the points and closing costs to your new mortgage. Rates have fallen so steadily that refinancing may make sense even if you have done so once already.

Tax Savings  Don't overlook the potential tax write-off: When you pay points to refinance, you must deduct the amount over the life of the loan, usually 30 years. But when you refinance a second time, all of the points that have not yet been deducted from the first refinancing can be written off in a lump sum.

Cash Out The best use for the extra cash is home improvement or to pay off any higher-rate loans you may have, in most situations monthly installment and credit card debt can be reduced 63%.

Trade your ARM For A Fixed Rate   If you took out an ARM in the past two years or so, you're probably paying 7.75% to 8.5%, and the rate could escalate to 11 or 12%. By switching to a fixed-rate loan today, you will not only reduce your payment, you will also lock in an attractive rate for as long as you own your home.

Old Rule of Thumb   The old rule of thumb used to be that you shouldn't refinance unless the new interest rate is at least two percentage points lower. However, 1st USA now offers zero point loans and low-cost refinancing. Therefore, even if your rate change is less than one percentage point, you may be able to save some money by refinancing.