A loan refinance can help borrowers meet several different goals

Refinance can result in lower interest rates

If your credit improves. Credit score is a major factor that determines loan eligibility

If you can't afford your current payments. Refinancing can make loan payments more affordable in a few ways

If you take out a new loan with a longer repayment term, the monthly payment will be lower

Just be aware that longer repayments may result in paying more interest over time

Alternatively, your new loan Lower interest rates can also lower monthly bills

when interest rates are lower. Interest rates are partly determined by market forces

If market rates have fallen since you took out your current loan, a refinance may be a way to get you a better rate