Not that Bob
500+ Posts
I understand that a lower interest rate is better, duh. However, do multiple refinances ever take you to a place of diminishing returns? I understand that "it depends" on many things like the interest rate, refinancing costs, etc. What I wonder is, don't you lose something everytime you "start the clock over?" The first years of a note are spent paying mostly interest, not principle. You refinance, and boom, the first years on the new note are spent on interest, not principle. Refi again...boom. It would seem that there comes a time when paying the vast majority of your money to interest would start to work against you. Is there a rule of thumb?
