Tell me what you think

I applied to refinance my house at 1.5% for five years, then I can go to 5.25% or refinance at 1.5% again. Here's the deal, I know my house will never be paid off in my lifetime, the amount paid off is nil. If I refinance, I'm only paying off the interest leaving me almost $800.00 extra a month. This is money I could put in savings or get the repair work done around my house. If I want to sell my house today I couldn't because of needing a new roof and other repairs. If I sell my house within the next few years I can still make a profit, there is enough equity. Why pay the principle if my house will never be paid off unless I win a multimillion dollar lottery (I'm 62). I can pay off all my bills, car and credit cards and almost be debt free except for the house.

grants and programs to repair your home. My city offers a one time grant of up to $10,000 for low income home owners to make necessary repairs.

Worst thing that can happen is they tell you no.

I'm not high income either, just in the middle.

There is no such thing as a 1.5% rate for five years. The 5/1 libor ARM is currently around 4.75%. Fixed for 5 years and adjustable thereafter at LIBOR plus 2.25%. You can't borrow money for 1.5%. Libor is around 2% and the 10 year T-bill is around 4%.

If you do have 1.5% it sounds like a NEGATIVE AMORTIZATION loan perhaps with an initial rate of 1.5%. Meaning, if you make only the interest only payment, based on 1.5%, the difference will be tacked on to your principle balance causing negative amortization.

These deals are touted heavily on TV/radio/internet.

Just my 2 cents. I'm a mortgage broker/banker.