I've contacted a direct lender company who does not charge me closing costs if I decided to refinance again from the same company (i.e., second and subsequent refinancing). The person I spoke to said that I can refinance the mortgage as many times and as frequently as I want, and I don't need to pay the closing costs. The interest rate is the same as other lenders.
I then though that it may be a good idea to start off with 5 to 7 year ARM with a lower rate and switch to 30 (or even 15) year fixed when the interest rate goes up. If the interest keeps going down, I just keep refinancing the ARM.
Are there any potential problems in doing that, except my mortgage term being reset at each refinancing? Any advise?
Thank you so much in advance!!!