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?


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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2 Responses to How does refinancing a mortgage work?

  1. OneEye says:

    With interest rate as low as it is now. No point of getting refinance later. Now it’s almost 5%. unless interest rate drop to about 3.5%, dont even bother to consider refinance. Refinancing is when you borrow a new loan to terminate your current loan. Fee to consider when refinancing, pre-payment penalty fee(from you current loan for not carrying out the full term of the loan), new loan application fee(usally 1-2% of the new loan amount), and of course some closing fees (small fee for lawyer and documentation).

  2. Gregory F. says:

    Well you heard it right, but when you refinance for your mortgage it increases your interest rate by 0.2%, for more information you can visit:

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