Mortgage myths

Following a good discussion on the topic of mortgage, I would like to share a few myths:

The first year the payment is almost all interest. Your friends and your brokers keep telling you that the first year you will be paying a high portion of interest on your loan. What does that mean? Actually nothing! Many people interpret this in the wrong way. They don’t want to refinance again because the payments for the first few years contain higher percentage of interests. Once you passed the first few years, your payment include more principle and less interests. If you refinanced again, your payment will contain higher portion of interests again, thus disadvantage.  Their reason is that they are paying a lot of interest payments, so it seems a waste to refinance again because they think all the interest payments they made did not count anything.