Playing the refi game is all about being ready to lock. When rates were at their lowest (low 5’s for a 30) I was working with people who just “sat on the fence” thinking rates would dip into the 4s. They missed out.

With a refi market, a LO has to prioritize their business. We know who’s purely shopping for rate quotes, who is wants to lock at a specific rate and who is serious about refinancing.

With fewer loan originators (and there will continue to be less and less of us) IF a refi market happens again, consumers better be ready to lock/commit if they’re indeed interested in refinancing.

I wish they cut again but I doubt the rates will fall much as there are not many lenders left to lend.

I still think it’s the stated income and no income verified loans that inflated home prices…plus the addition of buyers who were given the opportunity to purchase a home who may not have had that chance (w/their current financial picture) via subprime.

I expect that to happen again if politicians are serious about propping up home prices, as they did after 911.

There were times in recent years (following 9/11) when rates where dropping that people were wanting to refi over and over again just to try to have “the lowest” rate. Sometimes people become too focused on rate and they lose site of “common sense”.

There’s no real easy answer to your question about which is more or less costly without having specifics. If the refi was “no cost” then it’s probably a good deal. If they’re paying no points but still have closing costs, then it depends on the rate. Rates are always a moving target.

Seems to me that the cost of a refi is significant. Used to be a 1% spread equalled a need to refi. Rates haven’t moved that much in 4 years to have done 4 refis. Knowing Srini, I would think his cost to refi was nominal. But all too often people spend many thousands to refi, and do not pay attention because it is added to the note.

I’ve seen people do a cash out refi to get $15,000 in cash (old rules) and the refi cost them $20,000.

In all cases, isn’t buying down the rate by 1 point at time of purchase less costly over a 10 year timeframe than refinancing 4 or 5 times?

There are lots of tax differences as well regarding refi costs and discount points…but that is too complex a topic to deal with in a blog comment. One thing I will note is that if you have the seller buy down the rate, the buyer gets to deduct those points over the life of the loan, and not the seller. Check with your accountant (and many get this wrong so check for yourself as well). That tax law change was in 1994 or so, and I don’t believe has been changed since.