What is bad about refinancing

Many consumers who refinance to consolidate debt end up growing new credit card balances that may be hard to repay. Homeowners who refinance can wind up paying more over time because of fees and closing costs, a longer loan term, or a higher interest rate that is tied to a "no-cost" mortgage.

Does refinancing mess up your credit?

Taking on new debt typically causes your credit score to dip, but because refinancing replaces an existing loan with another of roughly the same amount, its impact on your credit score is minimal.

Is refinancing a waste of money?

As a refresher, when you refinance your mortgage, you get a new loan that pays off your existing debt. Doing so can result in lower monthly payments unless you take out a substantial amount in cash. In general, you should avoid refinancing your mortgage if you'll waste money and increase risk.

Is refinancing a loan good or bad?

Refinancing might be a good option if interest rates have dropped or are lower than your current rate, or if you need to extend your repayment term. Securing a lower interest rate through a refinance reduces your cost of borrowing so you'll pay less on your personal loan overall.