My husband and I bought our house in 2008, and we’ve refinanced the mortgage three times since then.
Sounds crazy, right? Who would want to go through the cost and hassle of taking out four home loans in just seven years?
We would, and you should consider it, too.
Refinancing doesn’t take much of your time and it can save you a couple of years’ worth of income. You could take that huge savings and retire earlier or put the money toward other major goals.
There’s no reason not to refinance repeatedly as long as you calculate the break-even period and it shows that you’ll likely come out ahead each time.
I say “likely” because it’s never a sure thing.
Your job could get transferred the day after you refinance, and you could end up selling your home unexpectedly.
That’s life, as my dad would say. The best you can do is make an educated guess about how long you’ll keep the new loan.
We were able to go from a 30-year, fixed-rate FHA loan at 6% to a 30-year, fixed-rate FHA loan at 4.5%, then to a 15-year, fixed-rate conventional loan at 3.375% and finally to a 15-year, fixed-rate conventional loan at 2.875%.
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