After making several bumbling errors, don't make a serious mistake, not with a refinancing mortgage plan. A costly mistake at this time of economic hardships will surely make you miserable, while your friend is having a good time with his smart choice of almost everything.

Before you announce your grand design for a refinancing mortgage loan, do your assignment. Read up on mortgage news, and join forums. You can ask the silliest questions, assuming your knowledge on these matters is zero. How you got the first loan is questionable, and you are suffering for your haste and ignorance.

You can also tap information from various online sites to get a broader picture of the mortgage business. Perhaps your friend can recommend a broker. Or if you can, get an independent and reliable agent who can spell out the pros and cons without pressuring you into making a hasty decision.

Here are some tips to get even with your friend:

- Weigh the terms of the mortgage. Are you ready to be tied and bound for a 30-year loan? A longer term loan has a lower monthly payment. You can have extras for those little things in the house or for yourself. A 15-year loan will be more expensive, but you will be saving a lot on interests alone.

- Examine the advantages and disadvantages of a fixed rate to an adjusted rate. A fixed rate is stable. Throughout the period loan, you will know how much money to set aside monthly. A variable rate has the advantage of dipping into all-time lows, saving you more money. But when the rates soar to an all-time high and stays there for a long time, you're dead meat.

- Do your math. Some lenders will charge origination or discount fees while others will not. Compare the costs. The lender boasting no fees will likely skim all your cream. So, find out if you are saving more from a lower rate. You might be astounded with your findings.

- Shop around for lenders. There will be one good one out there. Ask questions, and compare their responses. If you are unsure of the technical and financial details, then get a professional to help you.

- If you decide to stick with your current lender, that's fine too. Since your refinancing mortgage lender has your files and is aware of your performance, you might get a better deal the second time around.

Assess your financial situation: income, gratuities, fixed expenses, insurances, regular monthly bills, and expenses. If you are getting a lower interest rate, let's say about 7.5% for a $200,000 30-year loan, you will be paying $1,398, which is already $70 less than your present monthly bills.

Get that $70 and save it. By the end of the year, you will have $770 to spend at the end of the year or money for your taxes. But you will be breaking even after 29 months. This is the grunt part of your refinancing mortgage loan.

Will that be a better deal like your friend's at the other side of the fence? If it is, go for it.