Not always. There are two reasons to refinance your mortgage. First, if you can get a notably lower interest rate. Second, if you need more time to repay your loan. Always compare the closing costs to the potential savings. If you “lose” money refinancing, stick with your current loan. Try not to refinance because you need more time. If so, you will pay more in interest and fees. Yes, this is better than foreclosing. But, you also need to consider downsizing to a cheaper home or using these tips to reduce your monthly spending