Ever hear the pearl of wisdom that says you should only consider refinancing if the new interest rate is at least 2 points under your current rate? That may have been accurate years ago, but since refinancing has been costing less recently, it's a good time to think about a new mortgage! Refinancing your loan has various benefits that can make it worth the initial expenditure several times over.
You may be able to lower your interest rate (sometimes significantly) and have smaller monthly payments with your refinanced mortgage. You also might be given the option of pulling out some of your home equity by "cashing out" some money to remodel your home, consolidate debt, or take your family on a vacation. You may have the option to refinance into a shorter-term mortgage, giving you the ability to build up your equity quicker
By refinancing your total finance charges may be higher over the life of the loan.