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TheDemonsTalk t1_iyerh20 wrote

Reply to comment by Liquidretro in Question about first time home buying by [deleted]

The reason why you should wait is because your mortgage normally consists of the most interests payments during your first 5 years or so. If you refi again right after you just got a mortgage, you'll just be paying the interest, not your debt. You should always pay down your debt first... your new refi will carry your outstanding debt... always pay down debt first.

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Liquidretro t1_iyevau8 wrote

I get what you are saying, the debt is known as principal and that's debt amortization, all pretty standard stuff. I would disagree though that that's a good reason for waiting in the long run if you do the math. You are right if you were only refing for a small rate drop though.

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