Mortgage refinancing can be used for many reasons. Banks know that a principal reason borrowers refinance today is to lower the bankrate of their current home loan. While there are typically closing fees associated with refinancing a home loan, the loan may be created without any cash out lay.

Home owners with several years or more of payments under their belt generally have enough equity in the current loan to offset or cover any additional fees incurred when establishing the newly refinanced loan. Mortgage refinancing is best done when the market for bankrates is lower than what the borrowers have on their original loan.