Why is it not smart to refinance a home mortgage?

Refinancing may or may not be a smart move but it depends on several key factors (like your current mortgage rate and how long you plan to stay in your home).
If your current mortgage is at a very high rate or if you have a variable rate mortgage that could go up, refinancing could be a smart move. Interest rates can't go much lower than 3-4% so many home owners might benefit if you are paying more than 6%, for example.

PRO: Over 15-30 years, this savings can amount to tens of thousands of dollars -- a huge advantage IF you plan on staying in the home over a long term (maybe a minimum of 5 years, but preferably 7-10 years or more).

CON: Refinancing can be expensive after you factor in appraisal costs, application fees, title fees, and the closing costs. You may need to pay an extra monthly payment while they close one loan + escrow account and start the next.

If you plan to move within the next few years, the added closing costs and fees may exceed the long-term interest you could save.

CON: If your life is already hectic, refinancing can add an unnecessary burden.
Bank of America has taken more than 4 months to close a refinance loan and they repeatedly keep asking for additional information occasionally asking for the same information twice since it is taking them so long. They are very backed up due to the number of people refinancing and have assigned 4 different agents to work my application due to a branch closing and their backlog.

Some people will say that it helps to deduct mortgage interest from our income tax return but that's a dumb reason not to refinance at a lower rate. You only save a small portion (20-30%) of the interest that you deduct.