There is a cost to this, including a lot of effort.  But if it's something you've been thinking of doing, it truly could pay off.

You Could Score a Lower Interest Rate

Want a good reason to refinance? Consider this: Lower interest rates = savings...in some cases, a good chunk of savings.  And this is probably the number one reason why people refinance.

You Want to Get out of an Adjustable Rate Mortgage (ARM)

If you're not fond of surprises and unpredictability, you're probably not the biggest fan of an adjustable mortgage rate, which changes periodically based on a rate that's tied to a certain index.  This means that your mortgage rate could go down - or up - throughout the life of your loan. And we're guessing that you're not the happiest camper when your rate takes a sharp hike.  If that's the case, you might be better suited for a fixed mortgage rate.

You Want to Combine Multiple Loan Payments

If you happen to have two or more loans out for your home, refinancing to consolidate your loans might be a smart idea.  On top of the convenience of paying just one bill, consolidating your loans could also yield an overall lower interest rate.  But remember that consolidating your loans does not automatically equal a lower interest rate. So you'll want to contact your lender and carefully see if there's savings potential.

Take a look at other reasons you should consider refinancing here.