Refinancing can be a tempting option for those who believe that changes in their lives will affect their future payments. Maybe you lost a job, had a child, have decided to go back to school- anything that gives your income a large dent may make you want to lower your monthly payments. However, it’s always wise to consider multiple options. There are many great things about refinancing- but there are also some horrible pitfalls. Read this post by Anita at Live Like You Are Rich before making any big decisions:
Never make any decision before you have spent plenty of time studying, researching, calculating and recalculating the numbers. Don’t just trust what the brokers say (although some may have your best interest in mind); it’s not always smart to ask advice from the people who only get paid if you DO decide to refinance.
Read her entire post here– it lists situations where it would be a good idea to refinance, as well as some where it would be a horrible financial mistake.