WHAT IS THE DOWN SIDE OF DOING A REFINANCE ???

[Luke Devine]

Quick question if someone has some time to answer it I would really appreciate it. What is the downside of doing a refinance, if there are any? I had a mentor who would help me out a lot but he just had a stroke so it means a lot if you help me out with this question.

[Greg R.]

Hey @Luke Devine, I agree with Russell, cost is definitely one - your principal balance will increase unless you bring a significant amount of cash to closing. Also, Let's say that you have a traditional 30-year mortgage that you've had for 6-7 years (or even more), if you refi into a 30-year loan, you're resetting the clock and now you're back to 30 years until you pay off your loan. There is also the hassle of getting an appraisal, or maybe even a termite clearance if it's a VA refi.

However, there are a ton of benefits with refinancing - really depends on your scenario.