Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

There is really no advantage not to refi. If you refi-ed at a lower rate, kept paying the same payment and did not take cash out, the new loan would be paid off earlier than the original would have been.

Now, I agree with Raybyrnes that when you realize the monthly savings by paying a lower monthly payment, you do extend your loan and increase the amount of interest due but you can control that variable.

Rene

There is really no advantage not to refi. If you refi-ed at a lower rate, kept paying the same payment and did not take cash out, the new loan would be paid off earlier than the original would have been.

Now, I agree with Raybyrnes that when you realize the monthly savings by paying a lower monthly payment, you do extend your loan and increase the amount of interest due but you can control that variable.

Rene