What are the advantages and disadvantages of refinancing a home and how many times can one do that?

Answer 1

There are many in each category. There is not limit to the number of times you can refinance, but generally, everytime you refinance, you extend your debt. The misconception is that your house is an asset. This is not true. It only becomes and asset if YOU are not paying the mortgage. As such, a few advantages could be a lower interest rate, cash from the equity to do other things or possibly a lower term. A couple of disadvantages are the hits to your credit, an increase in your term, reduction in your equity.

As with everything, do a risk vs. reward analysis so you can make an educated decision.

Answer 2

Advantage is you can save money by refinancing to a lower interest rate (which is the only time you would do this).

Disadvantage is that mortgage refinancing has closing costs, title insurance, application fees. These have to be weighed against the savings on the new loan. May take years to get back the closing costs.

Answer 3

The advantages, is that you will get to pay lower interest rate as normally the bank or financial institution will increase their interest rate on 2-3rd year.

by re-financing, you get a better rate.

You can do it as many time as possible as long as you keep the minimum period you should stay in one bank. this is because they need to recover their loan profitably. that is why if you refinance to early, you might be penalised by them

Answer 4

You can improve your rate or use your equity for whatever you want. You could do it every week if you wanted but you should only do it when it is prudent.