If you're already a homeowner, there are times when it may make sense to refinance your mortgage.   

Most people refinance to get a lower interest rate and cut their monthly payments. The process is much like qualifying for a loan all over again. You won't be required to make another down payment, but you'll have to pay for an appraisal and closing costs.   

Most experts say the current market interest rate needs to be two or more points below the mortgage rate you're now paying to make refinancing worthwhile. At that rate difference, you'll recoup the closing costs - $2,000 to $2,500 on an average loan - in a year or two.   

Refinancing still may be a good idea even if the interest rate spread is less than two points in the following scenarios:   

• You're paying for an expensive house with a shorter closing costs payback.
• You plan to stay in your house a long time and are willing to take longer to recoup closing costs.
• To cash out the equity in your home to pay college costs or remodel.
• To roll a first mortgage and high interest rate second mortgage into one loan.
Some lenders offer streamline refinancing programs that simplify the process and reduce closing costs.