If you’re dreaming about refinancing your home because mortgage rates are low, first learn the costs and fees so that you don’t get gouged. Paula Sherman, lending protection coordinator for Housing Op portunities Made Equal in Richmond, said that if you have excellent credit and a pristine payment history, you definitely should be able to negotiate lower fees.

Homeowners are saving hundreds of dollars a month by refinancing their mortgage loans at interest rates near record lows. Some are pumping the extra money into savings, using it to bolster spending or making home improvements. A Midlothian couple may splurge on a trip to Disney World for their three children, now that they have $400 more a month.

Perhaps you are among the millions planning to swap your old mortgage for something better. A refinance allows you to take out a new loan that pays off your current mortgage. It’s important to look beyond the immediate monthly savings. Consider how much interest you’ll pay with a new loan in total, compared to what you’ve already paid with your old loan.

Mortgage bankers are slammed, as people seek to lock into 30-year conventional fixed-rate mortgage loans with interest rates at 5 percent or less. In recent years, the interest rate on such fixed-rate loans has hovered at about 6 percent.