House Refinance

[bradford702]

I have never refinanced a house before and I am unsure how to go about it. Plus, this information is not for me but my mom and sister. I found out over the weekend they are interest rate on their house is over 6.5% and suggested they should look into refinancing but I am unsure of the best way to do this. I asked my sister who the mortgage company was and it was some company I had never heard of before.

Would it be best to contact her current company to do a refi or look somewhere else?

 

[TheFied]

I believe rates upticked recently with fears of possible inflation.

Anyway, there are alot of questions that are pertinent. Are they in a 30 year note? How long have they been in there?

Closing cost are going to be about $2800. Can they pay cash for that or will they need to roll that into the note? Do they have 20% equity in their house?

 

[bradford702]

They currently have a 30 yr note, have lived in the house for nine years and have no interest in moving. I am unsure about the cash for closing. Yes they have 20 percent equity in their house based on the appraised value.

 

[TheFied]

So if they did a refinance, it likely makes more sense to move into a 15 year note than start over from a 30 year note and get back on the bad side of the amoritzation schedule. Plus 15 year notes in general have ~1/4 to 3/8% less interest rates than 30 year.