Call TODAY to speak with a USDA Home Loan Specialist (855) 474-7169 Primary Residential Mortgage

See if you qualify for a 100% Financing USDA Home Loan

What type of home loan are you looking for?
ZIP Code of the Property
What is the approximate loan amount?
What is your approximate credit score?
What is your name?
Last thing.
How can we contact you?
USDA Home Loan
★ Your information is secure and never shared. Read the privacy policy.

The Dangers of Refinancing

Refinancing your home mortgage has its pros and cons. And you should be aware of both its consequences and benefits before you consider applying for one. Here are some of the possible downsides of refinancing.

Danger No.1: Overpaying on Your Closing Costs

Predatory lenders will tell you whatever you want to hear just to get your business. These unscrupulous lenders often tack a number of inflated and/or unnecessary fees on top of the cost of your mortgage. Some of these charges aren't really disclosed up front so that there's barely any time for you to back out.

Danger No.2: Overpaying on Mortgage Interest Rates Because You Don't Want any Closing Costs

A refinancing application doesn't normally require any money to close. However, one way that some home mortgage providers may make up for this is to give the buyer a much higher loan interest rate. This would end up costing more on your end because of the interest fees that are included with your home mortgage.

Danger No.3: You Might Lose Your Equity

The part that you've already paid for is considered yours. Since you will be getting a totally different loan, you're technically extending the loan even further. So even if you decide to stay in the same property for decades, you would still be making monthly home mortgage for a longer time. You may end up losing money, or losing ownership of your house.

Danger No.4: Negatively Impacting Your Net Worth Over Time

Although refinancing can lower your monthly payments, there's a chance that it will make your loan more expensive because you are adding years to your home mortgage. If you need to refinance your loan to avoid losing your property, however;  then paying more in the next couple of years might just be worth it.

<< Back to the list.

Check Official USDA Loan Requirements

Get matched with a USDA lender and check your eligibility for 100% Financing.

Start Your Quote →




USDA Home Mortgages

Primary Residential Mortgage, Inc.
10121 N Rodney Parham, Suites C & D
Little Rock, AR 72227
855-474-7169
501-225-5626
NMLS # 3094
Branch NMLS # 252910
Licensed by Arkansas Securities Department 11558
PRMI Privacy Policy
PRMI Terms of Use
PRMI Consumer Voice
PRMI Licenses

Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

USDA Eligibility Map

A Loan Officer is waiting to talk to you.
AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY