Whenever rates are low, many borrowers will find that a mortgage rate refi of their first mortgage makes sense.  When you refi, you are getting a new first mortgage that replaces the old one.  A mortgage rate refi can lower your monthly payments and/or your interest rate.

Why?  Because you're replacing an older, higher-rate mortgage loan with a new, lower-rate loan.  For example, a 30-year fixed rate mortgage for $150,000 at 8.5 percent can refinance into a new 30-year loan at 7 percent.. Doing so cuts the monthly payments and/or your overall interest bill.

Additionally, rather than get a separate equity loan, some borrowers choose to just refinance their first mortgage in order to take cash out at closing to pay for home improvement projects, business expenses, education or even travel.