My lender suggested an idea. Take a credit which leads to pay higher interest rate and then refinance in 6 months. He guarantees that no additional cost during refinance. Is it possible? Anything I am missing?
There are always fees but they often get rolled into your new mortgage. Also, usually when you refinance, you restart the clock, so a 15 year mortgage refinanced 2 years in restarts the timer on those 15 years. So, over the life of the loan you potentially pay more in interest - so there are additional costs there too.
Its not completely honest to say there is "no additional cost" but that doesn't meant its a bad idea. Get the numbers on monthly payment, fees, and total money paid over the life of the loan to really compare.
Its not necessarily a bad idea, I've done it before when interest rates went way down. Just do the math - and maybe get a different lender.
There are always fees but they often get rolled into your new mortgage. Also, usually when you refinance, you restart the clock, so a 15 year mortgage refinanced 2 years in restarts the timer on those 15 years. So, over the life of the loan you potentially pay more in interest - so there are additional costs there too. Its not completely honest to say there is "no additional cost" but that doesn't meant its a bad idea. Get the numbers on monthly payment, fees, and total money paid over the life of the loan to really compare. Its not necessarily a bad idea, I've done it before when interest rates went way down. Just do the math - and maybe get a different lender.