Ideally speaking there can be 3 situations in which one should opt for Refinance Home Mortgage loan

1. When you are paying interest only mortgage: Interest only mortgage simply repay the interest and not affect your principal amount. This is right time to change your plan by refinancing your loans. Refinancing will help you to get loan at low rate of interest and at the same time repayment reduce your principal amount. Interest only payments are good for students or any one who is expecting his/her income to increase in future.
   

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2. To build faster equity: If you have 30 years or 20 years mortgage, it's wise to refinance home mortgage now and pay your loan faster. The reduced rate of interest will help you to fast amortize your loan. Besides, when you reduce your period of loan, you will be paying lesser amount on interest. The equity in your home will increase and you create an asset that appreciates highly.
   

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3. Reduce rate of interest: If you are paying an older mortgage that carries high rate of interest, its great time to Refinance Home Mortgage and reduce your rate of interest. Presently, the mortgage lenders are in rat race to get business. The presence of large number of mortgage lenders has actually made the market highly competitive. Mortgage lenders, in order to survive in market, are offering attractive Refinance Home Mortgage deals with low closing costs. This is right time to opt for refinancing and save 1000 of dollars that would otherwise go towards the payment of interest.