Time span left for previous loan
The time span left for repaying the previous loan has an important role to play. If one has already repaid majority of his home loan then opting for a refinancing option just for the sake of lower interest rates is fruitless. However, if the person has a huge amount of loan left to be repaid then refinancing proves to be a worthwhile option.
Refinance brings benefits if the loan is taken for a long period of time. Amortization period refers to the period of time in which the loan will be repaid. If you take the new loan for a longer period of time, the EMI might go down but the over all cost of the loan in terms of interest would be higher.