Mortgage refinancing replaces your current home loan with a new one, which may change your interest rate, adjust the loan term, or allow access to home equity. Potential benefits can include a different monthly payment or a shorter loan duration, but refinancing also comes with costs that vary, including closing fees. When exploring a refinance, lenders often review factors like credit history and overall financial picture, and it can help to understand how the costs compare to the potential long-term impact, especially if you plan to stay in the home for a while.