The process of refinancing your home loan can be intimidating and confusing, and the whole idea a bit stressful. With some simple guidance, however, you can quickly become more knowledgeable and comfortable with it. It is quite commonly done and is not as complicated as it may seem. Knowing a little about how, why and when to refinance will make the difference for you.First, what does refinancing your existing mortgage mean? It simply means to consolidate, or combine, all of your debt into one single loan, in turn reducing your monthly payments.HOW do you begin the process of refinancing? The easiest thing to do is to contact your current mortgage lender to determine if they can guide you and are willing and able to refinance your loan. Your information is already on file with them, and they are more likely to assist you than a lender who is unfamiliar with you. It is still a good idea to shop around first, by making a few calls, as you may be able to get a better interest rate, terms and conditions. There are generally a good number of lenders available to work with. The most important thing to do is to ask questions to ensure they are offering you the best deal they can. Do not be afraid to negotiate.WHY would you want to consider refinancing? There are a few different reasons you would want to consider refinancing your home loan. You may need to obtain cash for various reasons, perhaps for some home improvements. If you currently have an adjustable-rate loan, you may want to convert to a fixed loan. This will allow you to lock in a lower interest rate that will not change over the term of your loan. You may simply want to lower your interest rate, saving money over the term of your loan and on your monthly mortgage payments.WHEN is a good time to consider refinancing? The ideal time to refinance is when interest rates have dropped. You will want to do this before housing prices and interest rates start to rise again. Other good times to consider refinancing are when you have determined that your credit history has improved enough, the value of your home has risen to a reasonable degree, or you need the stability of a fixed-rate loan as opposed to an adjustable-rate loan.