People think about refinancing to shorten the term of their loan and save money on interest payments. Generally speaking, the faster you pay off a loan, the more money you might save. Refinancing is one way to shorten the term of your loan. Keep in mind that refinancing is often not necessary to pay off your mortgage quicker. You can also make extra mortgage payments. Check the terms of your mortgage to see if it has a pre-payment penalty before you make extra payments.