You may want to refinance when mortgage rates drop or you have a significant amount of home equity. However, before starting the process, it is essential to understand the pros and cons. Refinancing your mortgage means trading in your original home loan with a new one. And while this process offers many benefits — such as allowing you to lock in a new interest rate or lower your monthly payments — it also comes with some drawbacks that could potentially be a deal breaker. Determine whether to use the same ...