Mortgages: fixed at 7.11%, adjusted to 8.63%. Should I auto.Refinance?
My sister has a mortgage loan for $ 79,000.00 for which he was paid a 7.11% fixed for two years. It was just informed that the interest rate set new variable 8.63%. (About more 100.00/month!). My question is: Should we refinance so they do not pay 100./mo. more? And if it’s a good idea to refinance, please explain what are the pros and cons of refinancing and what it should be studied. . I think the property value is now $ 110,000.00 (please tell me what you might need information to better assess the situation so that you can provide options for the resolution) thank you in advance – you have a decision within the next three or four days up – and please, to help Thanks for the replies so far. Can you even more specific about “what their goal should be to?” It is useful to ask / look for another 7.11 set? Any possible negative side to refinance? LTV = low 79K/110cred.score = (560) = 2652/mo income (31,824 / year) (THX)