Mortgage refinancing involves taking an existing home loan and rolling it into another one. Refinancing is generally pursued by homeowners for a number of reasons. In many cases, refinancing can result in a better deal for the homeowner, but it can sometimes have pitfalls. Homeowners seek out mortgage refinancing to help them lower their interest rates, transform an adjustable rate mortgage to a fixed or even to extend the terms of their loans to lower payments. Sometimes refinancing is undertaken to consolidate debt by levering equity. When homeowners do this to pay down debt and then fall back into it, they can find themselves overextended.