Low Interest Refinance Mortgages Works for the Borrower
When you refinance, you take out a debt obligation with new terms to replace an existing debt obligation. Refinance mortgages are commonly taken out for home loans. Refinancing works for the borrower when the interest rates are low. Money that goes into higher interest charges can go into payment of the principal loan. Some refinance their mortgages when they find monthly dues too stiff to handle.
Refinancing will in effect change any of the loan components. It can reduce interest cost, extend the repayment time or reduce periodic dues. Monthly payments will be reduced if you get a low interest rate or when the term is extended but it means paying more in total interest over the life of the loan. It is really up to the borrower to decide what will work for him.