Refinancing is something that we do when we want to borrow more money or when we want to change the borrower. In refinance, we replace the mortgage obligations with a new service provider, with different conditions.. In other words, refinance home mortgage is, when you apply for a second loan to compensate your original mortgage.nnIf you are paying high mortgage installments, then refinancing is one of the best options to lower it. When you first buy your home, the rates and the repayment conditions heavily depend on the country's economy, your credit score and many other factors. Anyway, these conditions and rates are not usually fixed, so change from time to time. Then there is a high chance of rates beling low currently than your original purchase rates. Refinancing comes in to play at this point by giving you the opportunity to get a new mortgage for a lesser interest rate giving you a lower monthly installment. nnHowever, refinance home mortgages should only be pursued if it makes sense to do so. If you have at least 10% equity accumilated, then refinancing is a good option to consider. Even if your equity is less than 5%, it is possible to refinance your home mortgage. However, you may have to pay some cash to make up for the difference in equity. Refinancing home mortgage is not rational if the current market rates are not low. It is advisable to pursue the 2% rule which proposes that a refinance home mortgage will only reap benefits if you get an interest rate 2% lesser than the existing loan on your home. By refinancing, you will save a lot of interest so eventually you will only pay less than what you were supposed to pay. . Furthermore, there is absolutely no maximum limit to the number of refinance home mortgages you want to pursue, provided that; you have no late payments in the past 12months. Bad credit can be an issue when applying for a refinance home mortgage since, no matter how low the current market rate is, lenders do not give low mortgage rates for those with bad credit. Refinancing is not a good idea if your property has devalued from the original value. Finally, you have to tradeoff the time left for your mortgage between the low interest rates. If you have just a couple of years left from the original mortgage, there is no point of going for a refinance.