My parents have friends who have refinanced every 5 years and intend to continue to do it forever. “I never want to pay off a mortgage”, they say. They are even encouraging their adult kids to do the same.
I haven’t inquired as to what their thought process is exactly but I think they just like having lower monthly payments. However, I just can’t see the benefit of this as I thought mortgages are front loaded with interest and therefore you will actually be spending much more over time and when you sell you’ll owe more. On the flip side I see the obvious benefits of making extra payments on principle because it significantly reduces overall costs.
What am I missing?
Submitted December 08, 2018 at 10:06PM by anecdotal_yokel https://ift.tt/2C08Qbj
