I find it hilarious that we have a thread about no cost loan periodically on Pigg. I’ve been on both side of this argument. I started with buying down rates, thinking 1) there’s no such thing as no cost loan, 2) 4.5% is the lowest it has been it many decades, so it can only go up from here.
Fast forward several years and many refi later, here’s what I’ve learned: 1)I can’t predict future rate any better than my guessing the lottery # 2) When rates were falling, I went through a couple of years of not having to pay property tax and refi-ing about every 6 months.
I’m now a firm believer and practitioner of “no cost loan”. I’m actually refi-ing again right now, dropping my rate down by 1/8%, as well has having my insurance and property tax paid for. If rate drop again in 6 months by another 1/8%, I would do the exact same thing again. I will ring this cow dry until my rate is 0%. Until then, I will keep on refi-ing as soon as I can drop my rate by 1/8% and have my tax and insurance paid for.
