People refinance their homes for many different reasons;

Reducing Monthly Mortgage payment
The burden of a 15 year mortgage can make a monthly budget very tight. By stretching the term of your loan out to 20 or 30 years reduces your monthly mortgage payment, thus lower your monthly liabilities.
This method can also be used to accelerate the pay-off of the home in less than 15 years and at a reduced interest cost. Contact a Home Credit Loan specialist to explain the details of this program.

Rate/Term Refinance Vs. Cash-Out Refinance
Rate/Term refinance is a program to change to a lower interest rate or change the term of the loan without increasing the amount borrowed. The Closing costs can be rolled in ad the borrower may receive a maximum of 1% of the loan amount in cash at closing.
Cash-Out program is advancing money to the homeowner from the built up equity in their home. The borrower may use the cash for any purpose, investment property, vehicle purchase, or even a vacation. The closing costs roll into the loan.

Consolidation
Still paying a high rate of interest on your credit cards, mortgage(s), auto loan or personal debt? Why? When you can combine all of your payments into one, you save possibly hundreds or even thousands of dollars a month from multiple streams of interest. 

Debt Consolidation

Mortgage Insurance Elimination
Many lenders require mortgage insurance if your original loan amount was more than 80% of the purchase price.  PMI protects the lender in-case of borrower defaults on payment.  This insurance is unnecessary in a lot of cases, and can save the homeowner possibly hundreds of dollars each month by removing this expense.                 

Debt-to-Income Ratios
The standard debt-to-income ratios are:

• The housing expense, or front-end ratio, shows how much of your gross (pretax) monthly income would go toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income. To calculate your housing expense, multiply your annual salary by 0.28, then divide by 12 (months). The answer is your maximum housing expense.
  
• The total debt-to-income, or back-end ratio, shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. In general, your total monthly debt obligation should not exceed 36 percent of your gross income. To calculate your debt-to-income ratio, multiply your annual salary by 0.36, then divide by 12 (months). The answer is your maximum allowable debt-to-income ratio.

Taxes & Insurance
In addition, lenders include the cost of taxes and insurance when calculating how much house you can afford:
Real estate taxes: Because property taxes are part of your monthly mortgage payment, it is important to get an estimate of what yours would be. Ask your real estate agent or tax office for the rates that apply in the area you want to buy.