Classic american house exterior with garage and driveway

There is a question running rampant through the mortgage industry right now.  Is there a downside to refinancing multiple times?  The short answer is no!  However, let’s dive into some details and questions.

Question #1: “When do you plan on moving?  Within the next 12 months?”

Answer:  If you are planning on moving in 12 months or less, you may not recoup any of the closing costs (if there are any) in time to make the refinance worth doing.

Question #2: Are you paying high-interest rate credit cards?”

Answer:  If you are holding more than $10,000 dollars on a high-interest credit card, yes it makes sense to do a refinance.  Here is a fact: If you have a credit card at $10,000 and you make the minimum-only payments, it will take you 256 months to pay off, plus you will pay double!! That’s assuming you never borrow another dime on that card — even if you did a clean sweep of credit cards in your past refinance.

Is There a Downside to Refinancing Multiple Times?

The question that always needs to be answered anytime you do a refinance is, “What goal am I accomplishing?”  If there is a financial goal that cannot be achieved without a refinance, then do it.  If you can better a debt situation, then do it.  If you can fully fund a savings strategy, then do it.

In most cases, 90% of the time you will never find money at an interest this low, and where the interest can be tax-deductible.  The cost of money in your home is so much cheaper than you could ever get on a personal loan, credit card, or 401k loan.  Again, focus less on how times you have refinanced.  Focus less on the “terms.”  Instead, focus on the question “What am I accomplishing?” 

Is There a Downside to Refinancing Multiple Times?

Let’s put a financial roadmap together.  Does a refinance make sense at this time?  How can we help achieve that financial goal?  What terms might make sense?  Let’s talk.  There is no downside in refinancing multiple times, as long as you hit a financial goal!

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