For most people, refinancing a home only makes sense if the new home mortgage rate is 2% lower than your current rate. This idea no longer applies in today's market though, where loan terms are no longer limited to 30-year fixed rate mortgages. Lenders today are offering fixed rate mortgages with 15, 20, or 30 year terms. But this setback of a negative amortization mortgage can be counteracted if you choose to pay the additional amount now and not wait for its payoff overtime. Another advantage of negative amortization mortgages is that cash flow is more easily controlled. Remember that with an adjustable rate amortization mortgage, interest rates may go lower depending on the market. This is due to the fact that lenders sometimes decide to extend a loan provided that your current income is steady and your adjustable-rate mortgage payments for the first year are up-to-date. Another advantage of having an adjustable-rate mortgage payment type of loan is that it could turn out to be less expensive in the long run. Mortgage Home is where the heart is. That much is true. But home is also where money is. As the saying goes, "There's nothing like a home for a good investment." Touch . This is why for most people, buying a new home is probably the biggest financial decision they'll ever have to make. When you're on the look out for a new home, you need cash. A lot of people are tempted to get do a mortgage refinancing on their homes to increase their savings. Aside from that, people who want to consolidate their bills are drawn into mortgage refinancing. There are countless other reasons why people go for mortgage refinancing when buying a new home. However, it should be noted that not everyone benefits from mortgage refinancing. Mortgage rates have a slightly different equation in their supply and demand as compared to interest rates. This is the reason why sometimes, mortgage rates move differently from other rates. For instance, a lender has a commitment to make and is forced to close additional mortgages. To achieve this, they would have to lower down the mortgage rates even with interest rates going up.