Here are several reasons to refinance you home loan.

Several reasons to refinance your home:

• To lower the interest rate on your mortgage, reducing your monthly payments and total cost;
• To shrink the term or length of your loan, doing so can save you thousands of dollars in interest;
• To provide a way of life of consolidating your debt. 

All of these are excellent reasons to pursue refinancing, but several issues should be considered first.

To refinance your mortgage is similar to the process you encountered when you closed on your first mortgage. It requires an application, credit check, new survey and title search, as well as an appraisal and inspection fees. As you know, this process can be quite lengthy and expensive. 

Even though the process can take a bit of time, it is usually well worth it in the end if you are getting some significant savings. You will not only save money monthly but also over the course of time paying a lower interest rate will save you thousands usually.

As a rule of thumb, it pays to refinance if you can get an interest rate at least one percentage point lower than what you are currently paying. However, every situation is different. Some lenders* are offering decreased fees or no points. Asking yourself a few questions may help you determine if you can save money:

• How much can I lower my current monthly payment?
• How long do I plan to stay in the home after I refinance?
• How much will I pay in refinancing costs? 

Next, form out what you still owe on the house, how much you’re paying each month, and how much you at the start paid for the house. Itemize all the expenses of the refinance and estimate your new monthly payments. With this, you can figure out where you break even and when you initiate saving money.