As a homeowner wanting to refinance your mortgage you are looking for the lowest possible monthly payment. To find this you will need a mortgage with the lowest interest rate and the longest term. Interest only mortgage loans can offer this; however, you are not repaying any of the principal balance in the early years of the loan.
Another option is Adjustable Rate Mortgage loans (ARM). In the current market these loans are not the best bargain; however, Hybrid loans can offer a low fixed interest rate during the initial period, giving you time to refinance later down the road.
If you have a poor credit score your only option for refinancing your mortgage may be a sub-prime mortgage lender. These lenders specialize in poor credit lending. Because you have a poor credit rating you will be considered a credit risk by your mortgage lender. If a sub prime lender is willing to approve your mortgage you will be charged a premium interest rate. This could significantly reduce any potential savings you would realize from refinancing to the point where you could be losing money.
If refinancing today is not an option because of your credit you may be able to improve your score enough in a year or two to become eligible to refinance. Making your monthly payments on time and keeping your credit card balances low will do wonders for your credit score over the course of one to two years.