Home loan mortgage refinance is ideal for home owners who are yet to clear their mortgage loans. This is advisable when interest rates have subsided. Refinancing simply means that the home owner takes another loan to clear off the existing mortgage loan and is left to deal with the new creditor, who, in most cases offers lower interest rates as well as a longer repayment period, allowing you to pay as little as you can afford.Home owners should however be careful not be lured so easily, otherwise they may remain in a cycle of constant borrowing every time the rates go down. Too many refinance loans may create a bad image about the borrower and he may appear as an opportunist who is out to evade the interest rates that come with the mortgage loans.When sourcing for refinance loans, the borrower should be aware of the different types of loans that exist and how they all operate, and also the terms and conditions imposed by the lender. Many of the loans that are in the market today include but are not limited to adjustable rate home loan, reverse loans, interest-only loan, option ARM loan and the FHA loans. The terms may differ slightly from one type to another.Once you are familiar with the types, you need to get to do your homework on the cost of each. Do not be easily fooled by the lenders who urge you to apply for the credit facilities from them on the basis that they will charge you nothing. The fact that they are advertising their services means that they are in business. Some of the costs you may be required to meet are application costs, administration, processing and loan inspection costs.