Do you have one of those Option ARM products that goes from a great payment to a "how is anyone going to pay that?"  Is it with Wachovia?  If it is, then you might want to refinance now.  It is possible that you have an Option ARM that you will be able to afford when it does adjust, but 99% of those loans are not in that category.  That is why people got the Option ARM loans.  They could not afford the fully amortized loan amount.

Good news.  From Wachovia press release:

Effectively immediately, Wachovia is waiving all prepayment fees associated with its Pick-A-Pay mortgage to allow customers complete flexibility in their home financing decisions. This includes all Pick-A-Pay mortgages on 1-4 unit residences.

Additionally, for all new loan originations, Wachovia is discontinuing offering products that include payment options resulting in negative amortization.

These Negative Amortization loans are really hurting

and they clearly want to get them off of their books now before they become more of a problem.  If you have been waiting for your

-payment penalty to go away hoping the rates were not going to skyrocket past your ability to pay then you should act now.