If your mortgage is on a fixed-rate term and rates appear to be dropping, it would make sense for you to consider refinancing in order to take advantage of the lower rates. Refinancing is a practical option but you have to keep in mind that it also costs money. The good thing about mortgages with adjustable rates is that they can change interest rates over a loan term. So, if your mortgage has adjustable rates and yours was reset to a higher one, refinancing is rather good for you.