by Karl Denninger
The stupid, it burns.
The screamers are out again telling people to refinance — and apparently, plenty of people are doing exactly that with their mortgages.
Folks, a significant percentage of the time this is bone-headed stupid. Sorry, it just is.
The reason is that when you refinance you are resetting the amortization clock and your first payments go back to being nearly all interest.
Now if you are buying now anyway then this is a nice opportunity to get a lower rate on something you were already going to do. If you have purchased in the last couple of years then likewise, this might be a decent opportunity.