See answer to “How can I be sure that refinancing is right for me?” There are several other questions you may also want to consider when deciding whether refinancing is right for you:
Will I be staying in the house much longer? If not, the cost of refinancing may not be recouped by the time you move from the home.
Have I been in my home too long? With mortgage loans, the amount of principal paid increases over the life of the loan, known as loan amortization. Over time, the amount of interest paid begins to decline as the amount of principal paid each month begins to increase. If you have already paid enough interest on the loan for an extended period of time, there may be little-to-no benefit to starting this cycle over.
Is it worth it if my loan starts over? Refinancing from into a same term loan (for example into a new 30-year mortgage if you’re already in a 30-year mortgage) will lengthen your payoff. However, it may still be beneficial depending on how much interest you will save over the life of the loan.