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What is your refinancing strategy?

First of all I want to say I'm a bubbler. Have been sitting on the sidelines a few years now and family situation is starting to change so considering jumping into the market.

I think so many people misunderstand/overestimate their ability to refinance if/when the market crashes given that most buyers do not put enough down. I think there may be another 20% dip in the next 12-18 months in certain markets, including mine.

Our plan is to put 20% down and then once we sell our current home to put the equity into the home and hopefully have about 40% equity in the home based on purchase price.

I'm hopeful to refinance at lower rates once available. If you look at the fed funds rate projections it's reasonable to conclude rates could drop 2-3% by the end of 2025 if the fed/economy can accomplish their goals. Fingers crossed at that point I can get into a 15 year mortgage.

With that mindset, what type of mortgage would you try and secure? Is there a cheat sheet/formula of when it is cost effective to refinance?

submitted by /u/fredmcderp4
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source https://www.reddit.com/r/RealEstate/comments/12w0sy5/what_is_your_refinancing_strategy/
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