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Is it always good to refinance your home mortgage to a lower rate?

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Refinance

I am getting a zero cost refinancing option with a half a point lower than my current rate. I know that refinancing will increase the time to repay the loan, and I also hear that if you refinance frequently, like twice or three times a year, you do not end paying towards your principal amount, but rather pay the interest portion of your loan.

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    What does "no cost" really mean? I don’t think it really means "no cost". Maybe there is no broker fee but what about all the other fees = appraisal, filing fees,etc.
    And what about the cost of your time, putting all the loan documents together and following up. This definitely takes time and my time isn’t free, is yours?

    Also, if you continously refinancing to the same lenght of the loan, you will end up spending more money. If you always have a 30 year loan, you only pay interest and never principle.
    – and there is the other side of the coin, when you are less than 1/3 of the lenght of the loan, your entire payment is principle and typically not good to refi then either….

    A Hunch - Sep 21, 2012 |