Having a bad credit does not mean you should automatically get your mortgage refinanced. Yes, there are several refinancing packages for people with your situation. But if it will only be saving you a minimal amount, you might not even realize you will actually end up spending more because of the processing fees. Nevertheless, if you really want to rebuild your credit you should explore your options too. That is why it is imperative that you do your research and look at all the mortgage refinancing packages available for you.
You should look at the various interest rates offered in the market and the term of the loan. Of course, you should also consider the service fees and other costs associated with the loan. This would give you an idea of the total cost of each package. But then if you're offered more affordable payments, you could also consider the loan as long as you don't have to pay many more years compared to other packages. Again the total cost would be a good gauge whether a loan is worth taking. If the difference from your existing mortgage with the refinancing is a matter of a 1% decrease in interest rate, you might have to forego at the moment. Only consider taking a refinancing package if it's at least 2% lower. And before you even apply for a loan, get a copy of your credit record to ensure everything is accurate and to know which loan packages you are eligible for. This would increase your chances of loan approval and you will be avoid unnecessary expenses too because you will only apply for loans you know you qualify in.