Refinance mortgage A primer
Or, if you plan to sell your house within the next few years, you can get even lower monthly rates with a non amortizing loan. If you refinance mortgage loans via a loan that does not amortize, you pay only the accrued interest for a grace period of several years. When the grace period ends, you are responsible for paying the principal off on an accelerated schedule, or even in one lump sum. However, if you sell or refinance the house before the end of the grace period, you get the benefit of lower monthly payments, and repay the balance of the loan with the proceeds from selling or refinancing the house. If your analysis of your financial situation tells you that right now is a good time to refinance, mortgage interest rates as of May 2009 are ideal.