One of the most common reasons to refinance your house is to take advantage of the lowest available interest rates and thereby save on monthly mortgage costs.  Here are two ways to lower your monthly payments even if interest rates don't go down: By extending the term of your existing mortgage, you can reduce your monthly payments with a house refinance.

As an example, if you have 25 years remaining on your current mortgage, you may be able to reduce your monthly loan payments, even if interest rates have not gone down since you got your loan, by replacing your existing loan with a 30 year mortgage. Increasing the term of your loan will usually result in a higher total of payments over the life of the loan.

The remaining balance of your loan will then be repaid over 30 years rather than 25 years. The question is whether the lower monthly payments are worth delaying the benefit of completely paying off your mortgage. You may also be able to reduce your monthly payment if you have a fixed rate mortgage, by converting to an adjustable rate mortgage ARM with a house refinance.