Wow, that sounds foolproof. What could go wrong?
You cannot refinance without owning a house (that rules some people out right there), and you will find that refinancing is a rather involved process that may require some fees along the way. It can take a couple of months to get the paperwork squared away, and in the interim, you still have to make all of your regular payments. So there are some hurdles before you start. Then, once you refinance, you have to change your financial habits and how you manage money. The biggest danger to a refinancing arrangement is that you fall back in debt.
