Before you consider refinancing a mortgage, you should check your credit because good credit is essential for getting the lowest mortgage rate. The lenders rely heavily on an applicant’s credit score as a part of their approval process for refinancing, which contributes to your hard credit inquiry. Also, as the credit score factors in the age of your oldest account and the average age across all accounts, closing a long-standing credit account could cause your credit score to drop. That means your credit scores may take a slight hit when you refinance. But it should creep back up as you pay down the new loan. Finally, remember not to skip payment while refinancing. Nothing can lower your credit score quicker than late payments.