When Is Refinancing NOT a Good Idea?
Mar 5, 2010 Residential
John Curran for Time yesterday published Is Mortgage Refinancing a Loser’s Game? He makes a great point that I think many may miss.
To wit, the way fixed-rate mortgages are structured the lion’s share of your first decade’s payments are for interest payments, not to build home equity. Each time you refinance you reset the clock to zero, starting the interest-heavy period all over again.
If interested, read the whole piece because it includes a real life example.
Tags: John Curran, Time
