when u have a mortgage can u refinance EVERY year? for a lower payment?

Question

is this possible? i dont know if iti s.. thanks

Answer 1

Yes, if you do not have a pre-payment penalty. If you have an FHA loan you can do what is known as a Streamline refinance, these are called Streamline because the costs are kept way down. You need an "Honest" loan officer to guide you to make sure the the costs do not outweigh the benefits. I use to do what I called the Adjustable Rate game! This is where I took the lowest adjustable rate and usually refinanced about every 24 to 36 months, but I paid the payment I would pay on a fixed rate loan to pay down my mortgage as fast as possible to gain equity. Equity and good credit is the key! Use the equity to buy more property! In the past 7 years it has been better to get a 5 yr fixed at a low rate and pay more...but with the way the rates are now and where they are headed, grab a low 30 yr fixed at interest only and keep it with an equity line behind it for the write off!

Answer 2

You can refinance as much you want as long as you can qualify. Lowering your payment is another story - it might not make sense to refinance every year depending on where rates are at at that time.

Answer 3

Heh. I suppose it's possible, in theory. However, you may face prepayment penalties on early payoff of your current mortgage, plus fees to refinance again, which would undoubtedly cost you MORE than paying your current payment would cost.

Answer 4

It's generally possible, but if rates are trending upwards, why would you refinance into a higher rate?

Right now of course, it makes sense to refinance with rates going downward.

Answer 5

It may seem that easy but us not you have to be in good standings with the mortgage people and if you are welling to pay extra costs then try it but i really think that you should look into that a little more. I think that you can only do that every two years or so.hope that I was a good help.

Answer 6

yes, and you can multiple times a year too. As long as there is no fine for early payoff
If you want to cash out, they are usually at a higher interest rate. And while the feds DID cut the interest rate, the mortgage industry socialites are GREEDY and charge points. Points are just EXTRA dollars the the mortgage broker makes, and doesnt benefit the consumer AT ALL.

oh-- back to your question- it can be done, and IS done by about 20 percent of the homeowners every year.

Answer 7

Sure but wouldn't make financial sense. It costs money to refinance...the point of owning real estate is to OWN the Real Estate. You can't own it if you constantly refi.

Answer 8

Make sure that your current loan has no prepayment penalties. Typically it is not worth all the fees to refinance unless your new interest rate would be 1% lower than what you already have. Be careful playing this game that you dont sign into a loan with adjustable rates or prepayment penalties.

Answer 9

If your credit remains strong, you could.

BUT, re-financing costs money (fees, appraisals, credit checks, etc) and I would think the additional fees would not make up for a small drop in interest.

Also, as your loan would always be in its first year, you will always be maying the max interest and never paying it down by much.

If you can't afford your payments, take another job and put all the extra money towards the mortgage for a couple years. Then see if re-fi is a good move.

Answer 10

Maybe. Some mortgages have penalties for early pay off. Another factor will be the cost of getting a new loan every year. Would it make financial sense?