refinancing of a mortgage is recommended when

Refinancing is the process of obtaining a new mortgage in an effort to reduce monthly payments, lower your interest rates, take cash out of your home for large purchases, or change mortgage companies. Most people refinance when they have equity on their home, which is the difference between the amount owed to the mortgage company and the worth of the home.

Getty When you’re applying for a mortgage, your interest rate can have a huge effect. That said, if your financial.