Yes, at a certain point refinancing is not a good idea because you are starting over with the amortization and going back to paying almost all interest and very little on principal.
Luckily, it’s all simple arithmetic to make the decision.
I keep up with this stuff because I originate private mortgages.
I like to do interest only notes. No questions about amortization, you owe me the entire amount until you pay me off or make a principal reduction payment and your payment is then adjusted to reflect that. Simple for both sides.
Q Anon: 08/11/19 Trust Trump’s Plan ~ Vol.169, Q Day 653
8/12/2019, 9:20:34 PM · 771 of 778
SaxxonWoods to TEXOKIE
Yes, at a certain point refinancing is not a good idea because you are starting over with the amortization and going back to paying almost all interest and very little on principal.
Luckily, it’s all simple arithmetic to make the decision.
I keep up with this stuff because I originate private mortgages.
I like to do interest only notes. No questions about amortization, you owe me the entire amount until you pay me off or make a principal reduction payment and your payment is then adjusted to reflect that. Simple for both sides.
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Thanks for that explanation and insight.