Refinancing your mortgage is a process which pays off your existing mortgage and replace it with a new mortgage which supplies you with more favorable conditions, whether it be a lower interest rate, different terms, or a lower monthly payment – likely a mixture of all three. It can also be a useful option if you have previously held two mortgages (primary and secondary), wherein they could be paid off and replaced with one mortgage.
Those wishing to replace their existing mortgage with one that holds more favorable terms, whether a better interest rate, a lower payment (with longer terms) or shorter terms to pay your mortgage off more quickly. Refinancing could also take a conventional loan to an FHA loan. Whether refinancing is the right choice for you depends upon your individual circumstances, and best discussed with an mortgage professional. Good thing you know one of those.