You may want to refinance to get a secure loan to pay off a first loan on a piece of real estate and in some situations a vehicle.
Usually this happens when the available interest rate is lower than your present rate.
In some cases, you may refinance a home or mortgage to get a re-adjusted mortgage for a shorter time period.
Typically someone with a 30 year mortgage might want to change to a 15 year mortgage.
Often, if the new interest rate is somewhat lower you can save a lot of money over the span of the loan in interest this way.
Some people refinance homes and businesses taking value out of their equity to put extra cash in pocket.
This is a common way for small businesses to finance growth, or for a homeowner to buy a car or truck.
If the interest rate is low enough, you can refinance the property and come out with a large amount of cash in hand and have the same payment
Adjustable Rate Mortgages (ARM) can be a nightmare if the rate jumps up and your payments are nowhere near what you wanted to get into when you signed on the dotted line for the loan.
Some folks take an ARM because the financing opportunity at the time was the best they could get with a lowered income.
Afterwards, when the income is greater it is probably a good idea to refinance at a lower rate. The good thing here is that your mortgage will be stable.
If your mortgage has local real estate tax, and insurance combined with the monthly payment, those numbers can change, but not the interest rate.
You will be in a better position to know where you stand that way.