As mortgage rates remain high, new homeowners often choose to buy now and refinance later. However, this approach can be risky if certain mistakes are made during refinancing. Personal finance expert Suze Orman emphasizes that many individuals overlook the critical aspect of the loan's duration. When homeowners refinance, they may extend the loan term, which can lead to significant costs over time, particularly if they've already been paying higher rates for several years. Refinancing calculators can aid in decision-making during this process.
Many people make this mistake," she warned, before explaining that the real number her listeners need to pay attention to is the length of the loan.
Let's say that happens four or five years from now. Then you refinance for another 30 years. So these four or five years that you have been paying high rates become costly.
Collection
[
|
...
]