Refinancing means replacing your current mortgage with a new one, typically to get a lower interest rate, change your loan term, or tap into your home's equity. When rates drop, refinancing can lower your monthly payment or help you pay off your home faster. You can also refinance to switch from an adjustable-rate to a fixed-rate mortgage for stability.

Keep in mind that refinancing comes with closing costs, usually 2-5% of the loan amount, so the savings need to outweigh the upfront expense. It's about making your mortgage work better for your current financial reality.

When comparing lenders, look at the total picture: origination fees, interest rates, and other closing costs to understand your true cost. Everything is negotiable, so don't hesitate to ask questions.