Typically one only rationally considers refinancing if the potential for a substantial cost savings exists or if there is a need to extend the loan due to weak cash flow or other non recurring committments. If you need legal help to determine whether you have a defense you should get that help before entering the refinancing deal. In addition there are also closing and transaction fees typically associated with refinancing debt. Debt collectors may try to scare you into refinancing because they have no other way to get their money. Renegotiating a mortgage is technically not refinancing but it is an amendment to your existing mortgage. Refinancing your mortgage can be a financially advantageous move particularly for those who would like to go from an arm to a fixed interest rate.
