When and When Not to Refinance Your Home Loan

Refinancing a home loan can be a smart financial move but only when it aligns with your long-term goals and affordability. While many borrowers focus on interest rate reductions, the cost of refinancing a home loan and its broader impact are often overlooked.

Understanding when refinancing makes sense and when it doesn’t helps homeowners avoid unnecessary expenses and make informed decisions about their mortgage.

What Is Refinancing a Home Loan?
Home loan refinancing involves replacing your existing mortgage with a new one either with your current lender or a different lender. The new loan may offer a different interest rate, repayment structure, or features.

If you’re new to the concept, this guide explains what refinancing a mortgage means, including how it works and why borrowers choose it.