If the conditions are right, you may be able to hold off foreclosure by refinancing your mortgage. If you refinance, you completely replace your old mortgage with a new one that could extend the term of your loan, reduce the interest rate or change the type of loan -- with the primary goal of lowering your payments. But remember, the benefits of refinancing will depend solely on the loans and interest rates available at that time. Wells Fargo recommends refinancing only if interest rates are at least one half of a percent lower than your current rate [source: Wells Fargo]. Since you're obtaining a completely new loan, you will have to go through much of the same process you did the first time you applied, although it's generally more streamlined with a refinance. If refinancing does not ease your financial burden enough, you may be in just as much trouble with the new loan, so be sure this is the best option for you to avoid foreclosure before you start the process with your bank.