If you plan on moving soon
Refinance costs usually take a year or so to pay off before you start saving on your mortgage. If you know that you will be moving before the amount of time it will take you to break even, you should think twice about switching loans.
If your loan carries a prepayment penalty
Some unscrupulous lenders add prepayment penalties to a borrower’s mortgage. These penalties charge you expensive fees if you sell or refinance your home before a certain amount of time (usually 1-5 years). Calculate if your refinancing savings could outweigh these fees.
If you are close to paying off your current mortgage
If you are close to paying off your mortgage, it may make sense to wait instead of refinance. Refinancing can extend the term of your loan and increase your costs.
If you are having financing problems
If you are having major financial problems, you may want to reconsider refinancing as a way to consolidate your debts or borrow money. In some situations, your home could be put at risk if your financial problems continue.