If you're already a homeowner, there are times when it may make sense to refinance your mortgage.
Most people refinance to get a lower interest rate and cut their monthly payments.
The process is much like qualifying for a loan all over again. You won't be required to make another down payment, but you'll have to pay for an appraisal and closing costs. Most experts say the current market interest rate needs to be two or more points below the mortgage rate you're now paying to make refinancing worthwhile. You plan to stay in your house a long time and are willing to take longer to recoup closing costs. To cash out the equity in your home to pay college costs or remodel.