what would be a better deal on refinancing?

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I have 11yrs on a 4.5%, 56000 loan . I have to refinance or take out a 2nd mortgage because a sister wants to cash out. Should I refinance again (I would do a 15yr.fix) or keep what I have -only 11 yrs left & take out a 2nd & hope for a low int rate.

1 Comment
  1. Reply
    Spock (rhp)
    May 3, 2011 at 5:01 pm

    if you aren’t living in the house, tell your sister that you too want out and that it is time to sell.

    my guess is that the market is in such poor condition that she’ll decide to hold on for better prices in three to seven years.

    ***
    If you are living in it, you need a current appraisal to determine the current fair value — and then offer her that value times her percentage ownership interest.

    Your sister has been part of the economic risk on this thing and if the value isn’t what she thinks it is, she needs to eat her share of the loss.

    ***
    after all that, your sister will want you to get a new loan because that removes her from any future liability. This should be ok with you since you’ll be buying her share at near a market bottom and thus any future value gains will belong entirely to you since you let her off the debt hook AND paid her cash for her interest.

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