Refinancing a house means obtaining a new loan to cover the previous one and getting better terms on mortgage agreement. Financial experts recommend to check home refinancing programs each three years, because during this period the terms of mortgages often improve.
Refinancing requires you to find a better deal for a new mortgage. After you negotiate terms on the new loan, your lender will pay the money to your old lender closing your refinancing process. As a result, you will make regular payments to a new lender on different terms.
While you can get a lower rate, you should still pay attention to a repayment period. Make sure you will not overpay in total interest cost during the mortgage life.
Another important point of refinancing mortgage is a necessity to stay in your house during the repayment period. This will guarantee your benefits from refinancing.
Find more information also here: When is refinancing home mortgage worth it?