For many mortgage payers, refinancing is not only a big option but the one & only solution. The main advantage of refinancing your property is that it effectively reduces the interest rates as well as monthly payments on mortgage . Even it is same if you have a balloon mortgage to pay off. In case of this short-term loan, your monthly payments on mortgage are figured out on the basis of 30-year loan amortization schedules. But as the name suggests, after a short span like 5-7 years the rest of the loan should be paid as the balloon payment. Mortgage finance faced a turn down during the recession period. But as the period is going to over gradually, lenders have started offering comparably cheaper home loans . Mortgage rate variations : It is evident from the latest figures that, mortgage rates have dropped to seven year low ! According to the researchers, before 2 years at the time of financial turnroll, the average rate on a 2-year fixed rate mortgage exceeded