What mistakes should you avoid when refinancing loans?

The first mistake is looking only at the interest rate and forgetting about commissions, insurance, and other fees that add to the actual cost of the credit. The second is not checking whether there's a penalty for early repayment of your old loan - otherwise the money you save on the rate just goes down the drain. The third and a common one is refinancing for a longer term: sure, your payment will be lower, but the interest overpayment will grow significantly. And make sure you compare the terms at several banks, because the difference in the total amount you end up paying can be substantial.