Since Home Loans run for long periods of time, there is bound to be a fluctuation in their interest rate. People opt for Home Loan refinancing when the trending interest rate is much lower than the rate they are paying on their Home Loan.
You can opt for Home Loan refinancing if there is at least 1 percent difference in the interest rate. You can choose to refinance your loan by moving it to a new bank or by switching from a fixed interest rate to a floating rate of interest.
If there is little change in the interest rate, then refinancing your Home Loan may result in an expense as you’ll end-up paying more in refinancing charges than the actual benefit accrued.