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You can refi your low-principal, high-interest mortgage later, if interest rates ever come down. You can't renegotiate your high-principal, low-interest mortga
by vkou 3y ago
You can refi your low-principal, high-interest mortgage later, if interest rates ever come down.
You can't renegotiate your high-principal, low-interest mortgage later. (Well, you can, if rates go up, but why would you want to?)
- fragmede 3y agolook into mortgage recasting.
- lotsofpulp 3y agoThat is just paying extra to lower the principal. How does that help if you have a high principal? You are still paying it. With a low principal, high interest rate mortgage, refinancing to a lower interest rate reduces the amount you were going to pay, without you having to spend any money. For example, lots of people that bought in 2015 to 2019 at higher interest rates made out great, they paid a lower price for their house, then refinanced in 2020 to lower their interest costs (and sometimes even got paid to refinance).