Of course refinancing can have other advantages too - many people are interested in the cash out refinance deals whereby they get a decent sized lump sum of money when they switch over their finance.
So, it sounds like everyone should refinance their home... of course this is not the case - it depends on your circumstances and these will be different for everyone. However, the savings could be very significant, so it is certainly worth some of your time investigating and making inquiries.
One of the reasons people seem to shy away from looking at a new mortgage is the same reasons that many people do not shop around for their very first mortgage - they find it a little daunting to know what things need to be compared. No two mortgage companies seem to offer exactly the same deal....
But it can be really quite simple. When you get a mortgage offer you need to add together the interest you will pay and the fees that will be charged by the lender. Some mortgage companies will put in a larger fee and try to make their profit there. Others will be asking a lower up front fee but less generous interest rates. What you want to know is what you will be paying over the life of the mortgage.
Another good reason to look into refinancing your loan is that your circumstances have changed. You may be in a position to pay off your loan more quickly and want to look for a shorter term at a more favorable rate. Alternatively you may decide that you are in less of a rush to pay off the loan and want to extend the period of repayment. Both of these offer the ideal opportunity to look around at what deals are on offer. Do not ignore your current lender either - they may well be very keen to keep your business and offer you a deal that makes you want to stay. It might not be quite the best you are offered but it may be the most convenient.
When considering the refinancing choices do not forget to find out if your current mortgage company will charge you any money for paying off the loan early - sometimes they do, and you will need to add this into your calculations. And find out if the new company will want to charge you for anything else beyond the cost of the loan - do they want to charge you for a new home survey for example? Again, what you want to know is the total cost of the loan. It is possible that even firms that charge monies up front may work out cheaper, so do not be put off by any additional charges without doing the math.
When it comes to a refinance you can also look into the various mortgage products available these days, such as fixed rate or variable rate mortgages - this too can often be a smart switch that can save money. Just like with any financial transaction however, you need to make sure you do not over commit yourself - only risk what you can afford.
A new mortgage can be a way to save a significant amount of money with very little effort. And remember, you can look into the options for nothing!