I have a coworker who put 20% down – and can’t get a good refi because the LTV is about 90% now… so PMI kicks in. He’s got great credit. Never missed a payment, wants to take advantage of the lower rates but the PMI keeps the payment the same, so it’s not really worth it.

I guess I’d have less of an issue with this plan if it doesn’t extend the terms of the loan. The problem with serial refinancing is you keep restarting that 30 year mark…

I’d also insist on credit checks – and only offer this to folks with good credit/income.

Just apply the new interest to the loan for all candidates that pass credit checks.

Heck – I could keep my exact same interest rate and refi about $700 off my payment. Just by refi’ing from my 15 year to a 30 year. Extending the end date may help with monthly cash flow, but it doesn’t help retire the debt.

I agree with some of the other posts about the big problem with the economy being jobs.