Refinancing your mortgage is to pay off your current lender by borrowing from another or the same lender and is done for multiple reasons. Most homeowners refinance their mortgage to get a lower interest rate thereby reducing their mortgage payment. There are however many other reasons for refinancing your mortgage. Refinancing may be a worthwhile option if one is desirous of reducing the term of their mortgage. For example moving from a 30 Year Fixed mortgage to a 15 Year Fixed mortgage resulting in thousands of dollars of savings on the interest paid over the life of the loan. The reverse of this is however true as well. Some borrowers may have a need to reduce their monthly obligation. In this case one may consider moving from a shorter term mortgage to a longer term mortgage. i.e refinancing from a 15 Year Fixed mortgage to a 30 Year Fixed mortgage. Other reasons for refinancing may include: Moving from an adjustable rate mortgage to a fixed rate mortgage, to eliminate mortgage insurance if the property value has appreciated enough to justify this, to get cash-out to consolidate credit card or other debt or to finance a major purchase like an automobile.