Reply to Is there any reason NOT to refinance?

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Reply to "Is there any reason NOT to refinance?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]also when you refi you can deduct more on your mortgage because the interest gets paid up front.[/quote]

So much awful advice and commentary in this forum. This isn't even true. If you refinance to a lower interest rate, you have less interest to deduct (not that anyone should be borrowing to get a deduction). Points on a refi aren't deductible in a refi, they must be amortized over the length of the loan. [/quote]

I think she just meant that if you were 10 years into a loan your current interest payments are likely reduced relative to the amount, even at a lower rate, if you reamortized your loan to 30 years. That is to say, 10 years into a $450K loan at 3% you might be paying $800 a month in interest, if you refinanced that loan to 2.875% and re-amortized to 30 years, your interest payments in year one are higher so you'd temporarily enjoy a larger deduction.

That said, its still really shitty advice.
 
[/quote]

How is that shitty advice? You will deduct more and pay less. I think it sounds like a win. Most people don't pay off their houses anyways.[/quote]

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