Mortgage refinancing is a process of renegotiating your original mortgage agreement.

However, advantageous and attractive it may sound it is not for all. Generally speaking refinancing is only worthwhile if the current market interest rates are 2% less than your mortgage interest rate (fixed).

However, there are inherent costs in altering your existing mortgage and so you will probably not see the results of your reduced interest rate for at least a couple of years, but this will of course vary depending on the amount of the initial loan taken and the interest rates (both market and contracted).

It is generally only recommended for homeowners who are certain that they tend to stay in their home for the long-term, so that the additional fees incurred for refinancing can be absorbed; or for people who prefer the certainty of having a fixed-rate loan so that each monthly repayment will remain constant.