7 Mortgage Refinancing Moments That Dramatically Altered Lives for Better or Worse

2. The Debt Spiral

Not all refinancing stories end in success, as illustrated by the cautionary tale of a family who refinanced to help pay for their children’s college tuition. Soon after, the economy took a downturn, leaving them unable to keep up with their higher monthly payments. Their once hopeful decision became a heavy burden, highlighting the risks of refinancing when future financial stability is uncertain. Their experience underscores the danger of using a home as collateral for large expenses and the importance of having a well-thought-out financial backup plan.