As soon as interest rates drop, home owners hurry to refinance mortgages, most times without even considering whether doing so is a good idea or if it makes sense financially. Unfortunately, some home owners are easily lured by the thought of lower mortgage interest rates; nevertheless, the rates are nothing but a small issue on the bigger problems.

Home mortgage refinancing is simply getting a loan to pay off your mortgage. It is a simple loan over a loan. Though some people do not know this works, there are those who have been doing his as a way to extend the terms of their loans. This is of course not a sensible thing to do. It is just like being on constant debt forever.

With refinance mortgage loans, you get to pay off your current mortgage, but you also get to pay for a new loan which may be longer that from your former creditor.

If you have a poor credit history and you think you can not apply for a refinance, then you should be glad to know that ether are lending institutions that offer bad credit home refinance loans for those who are currently suffering from bad credit records.

Ther are many types of home loan mortgage refinance schemes and they also come in different home mortgage refinance rates.

The following are the different and common mortgage loan types that you may want to consider:

• Interest Only Mortgage
• Option ARM Mortgage
• Adjustable-Rate Mortgage
• FHA Loans
• Reverse Mortgages

Home mortgage refinance rates vary depending on the value of the home, you capacity to pay and of course the amount you need to borrow.

Even though it is possible to acquire a no-cost refinance loan from a mortgage lender, you must keep in mind that these lenders are in the business of making money and they will not go into a transaction that they will lose money. If the lender do not charge you upfront then you can be sure that they will earn income through fees that are going to be rolled over into the loan or by requiring you to pay a higher than regular interest rates.