Refinance

Refinance - I did a refinance for a friend of mine, he had received a bad deal when he bought his home and was getting worried about the adjusting rates, so we put him in a nice fixed rate loan. The only problem was immediately after he got his loan, he started paying attention to the housing market and the mortgage market.

When rates would move any either direction he would ask if he should refinance again. Of course, that would make me a lot of money, but its a bad idea for him. He already spent a few thousand to refinance, and even if we rolled the costs into the loan, he would owe thousands more.

Unless it is a really bad deal, there is no reason to refinance so quickly, the housing market doesnt move that fast. But if it is a bad deal, refinance as quickly as possible. If you do you screw the company that screwed you, but they usually stack on a prepayment penalty just to make sure you cant. But what happens, is that the commission that is gained from any sale is forfeited if refinanced within 3 months.

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