Consider refinancing when interest rates are lower than your current rate, when your credit score has improved significantly, or when you need to access home equity for large expenses. It’s also wise to consider the break-even point — the time it takes for the savings to outweigh the costs.

Refinancing a mortgage comes with various costs, including, but not limited to, application fees, origination fees, appraisal fees, title insurance and search fees, and possibly prepayment penalties. It's important to calculate these costs to understand if refinancing is financially beneficial.

Yes, refinancing can affect your home equity. If you opt for a cash-out refinance, you’re borrowing against your equity, which reduces the overall equity you have in your home. Conversely, if you secure a lower interest rate without withdrawing cash, you may build equity faster by reducing the interest portion of your monthly payments.

Qualification criteria for refinancing typically include a certain level of home equity (usually at least 20%), a good credit score (which can vary by lender), a stable income, and a low debt-to-income ratio. Lenders also consider your payment history on your existing mortgage.