Consider refinancing if you want to lower your interest rate, reduce monthly payments, tap into home equity, or switch loan types (e.g., from adjustable to fixed rate). When it makes financial sense, which isn’t as often as it used to be. With current rates around 6.75%, you probably won’t save money refinancing unless your current rate is significantly higher. But you might refinance to remove PMI, cash out equity, or switch from an adjustable to a fixed rate.