Pros of refinancing your home
 Shorten the term of your mortgage. Say for example when you first bought your house you decided to get a thirty year mortgage which you have now been paying for about 6 years. Refinancing your home is a great way to switch your loan to a shorter term of either ten, fifteen, or twenty years. This will make your payments higher but will also save you thousands of dollars in interest and get your house paid off sooner than with a thirty year loan.
 ARM's. If interest rates were really low when you bought your home and adjustable rate might have looked very appealing, which is why you opted for this type of loan. However as interest increase you may seem to notice that your adjustable rate is not so appealing anymore. You can fix that by refinancing your home and taking a different loan option of ten, fifteen, twenty, or thirty year fixed mortgage loan with a lower interest rate. If you know you're going to be in the house for a longer period of time than originally planned then a fixed rate definitely makes more sense and is more secure than an ARM.
 Interest rates. A huge advantage to refinancing your home is that you can often times find interest rates much lower than what you originally locked in at. If the market is right and interest rates are falling then it is to your advantage to refinance at a lower rate and possible a lower monthly payment.
 Consolidating loans. Another big advantage to refinancing your home is that you can consolidate. Sometimes first home buyers need to use a first and second mortgage to buy their homes. One of the loans will have a fairly low to medium interest rate while the other will almost always have an extremely high interest rate, which can make it difficult to pay off the home. Refinancing can make it possible for you to consolidate your loans with a lower interest rate and probably a lower monthly payment.
 Debt. Sometimes we have other things that need to be paid off or taken care of and this is a great way to do that. When you refinance your home you can sometimes have the option of taking a certain amount of cash out in order to pay off another loan or maybe a credit card. Instead of taking out a home equity line of credit you can use your refinance to pay off some of your debt.

Cons of refinancing your home
 A set back on your mortgage. Although refinancing might seem like a good option it can set you back to "ground zero" in terms of how much you are paying off. Everything you have already paid off will be set back to zero basically and you will have a larger balance on your mortgage.
 Equity. When you refinance your home you can lose a lot of equity in your home so when you turn around to try and sell you will not get as much back because you have decided to refinance.

These are only a few of the pros and cons of home refinance. Refinancing your home takes time and consideration in interest rates and the fluctuating market so consider carefully what you really want to do before just diving in head first.