Question by RobertG: When people constantly refinance their debt, dont they end up paying more?
I mean unless you refinance a mortgage from 10%(unheard of) to 3.0001, in the first 5 years(also unusual) and pay triple-principal for 18 months, then you’re ending up with interest sitting on the shoulders of interest right?
Answer by Caveat Emptor
Sometimes. What also matters is the term of the new loan compared to the remaining term that was on the old loan.
Know better? Leave your own answer in the comments!
If they do it all the time, yes, they are repeatedly paying closing costs and losing out. You do it once at the right time and you’re saving.