Getting a mortgage the first time around can be a horribly daunting task. Who would want to go through the loan process a second time? Believe it or not there are many advantages to getting your mortgage refinanced and in many situations it's totally worth the effort.

The main advantage to a mortgage refinance that sticks out for most people is the ability to do two things: lower the interest rate and change the repayment terms by cutting some of the duration out. In a nutshell, mortgage refinancing can save you a ton of money. It can help to lower the amount of interest you'll pay over the course of the loan. Be sure to look for a refinance that will lower your interest by at least 1% or more.

Sometimes you're able to change the terms in regards to the duration. For example, you might have a 30 year mortgage term now, but want to pay it in half the time. When you do a mortgage refinance you can shorten the term to say 15 years if you qualify. This of course, allows you to own the home quicker and will save a massive amount of mortgage interest payments.

Another advantage to a home mortgage refinance is debt consolidation. If you have enough equity in your home you can use that to pay off all of your other debts, leaving you with just the one payment to make to your mortgage company. This makes a lot of sense if you have high credit card debt because mortgage interest rates are significantly lower than credit card interest rates. If you don't have debts to pay off, most companies will allow you to use the equity you get from refinancing as cash for home repairs and other purchases instead.

All of those advantages are great, but keep in mind you'll be paying some of the same fees you paid the first time around such as an application fee, closing costs, title insurance and other fees as well. So while there are clearly great advantages to having a mortgage refinance done, you should consider if it will be enough of a savings to make it worth it. You will also want to investigate if you qualify for government refinance programs such as the Making Home Affordable program and the Home Affordable Modification program.

New: Make sure to check out our brand new Government Refinance Guide. Our guide offers a huge amount of information about government refinance programs and is one of the best resources on the topic around!