Have You Been Thinking About Refinancing Lately? Here’s When It Does Make Sense, And When it Doesn’t.
Refinancing a mortgage is actually not an ideal situation; in fact, most owners don’t refinance because they are doing well. On the other hand, sometimes you can do it to save a little money each month, as you won’t have to pay private mortgage insurance. This is only if you are able to find a refinancing program that doesn’t cost anything.
On the other hand, refinancing, surprisingly, can have some advantages. Some people do so in order to take advantage of especially low interest rates, and to simultaneously shorten their loan term. Refinancing means the house can be paid off faster. However, it does take some effort to get the process started. But then, depending on what your current situation is like, it may be worth it. Below are some times where it might make sense to refinance your mortgage loan. 
With the intent of shortening the length of your mortgage. If you have a 30-year mortgage, now may be a great time to consider refinancing. Depending on the interest rates, you may find that a fifteen year mortgage is not much more expensive than the thirty year mortgage you have been paying. You’ll have to spend time researching the current rates to see if this makes sense; obviously, if the current interest rates are high, you shouldn’t refinance. The time to do it is when the interest rates are very, very low.
It makes sense to refinance if you are doing it to low your interest rate. If you’re currently paying high interest, refinancing may be the right thing for you do to. You can save a lot of money, and all you really have to do is gather documents and fill out the paperwork. 
Also, refinancing your mortgage at that low interest rate means you can save lots of money. It can give you extra money each month to pay for your other financial responsibilities. You can start saving more money, or buy things that you’ve been needing to buy, or pay off any debt you have.
If you currently have an ARM, now may be the perfect time to refinance into a fixed-rate loan. Getting a low fixed rate mortgage means you won’t have to pay different interest rates each year. You’ll know exactly what you’re going to be spending, so you’ll have a clear budget instead of a tentative one. You can also cash out your home equity refinancing. This can do wonders, for example, if you’re wanting to buy some real estate o
r start a company.
It depends on your goals. Of course, you’ll hopefully be managing your debt in a responsible manner. Before refinancing, consider what your goals really are. Whether your goals are such that you want to lower your monthly mortgage payment, you want to get out of debt faster.
It is also important to take all closing costs and fees into consideration. Depending on which new loan you choose, you may have to pay thousands of dollars in fees for your new mortgage. Weigh the pros and cons of your particular situation and act according to your own best interest. With some thorough research and planning, refinancing could turn out to be the best thing for you. For further reading: 6 Questiont To Ask Before A Refinance.
Many homeowners refinance in order to consolidate their debt. At face value, replacing high-interest debt with a low-interest mortgage is a good idea. Unfortunately, refinancing does not bring with it an automatic dose of financial prudence. In reality, a large percentage of people who once generated high-interest debt on credit cards, cars and other purchases will simply do it again after the mortgage refinancing gives them the available credit to do so…sad to say, but true. If you can, try not to get into the position where you have to consider re-financing (unless a life situation comes up. I’m really referring to the people who spend money they know they shouldn’t, and then end up in debt).