How does refinancing a mortgage work?

Question by Crystal Sunshine: How does refinancing a mortgage work?
I’ve seen that you can put down as low as 3% for a down payment on a home but I know it’ll cost more for monthly mortgage payments this way. How does refinancing a mortgage work? Would someone be able to put down 3% and then later on refinance to a better interest rate?

Thanks!

Best answer:

Answer by godged
The only way this will work out is when you do not have to pay PMI.

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