Question by superwoman: Will it be better to refinance after the pre-payment penalty?
My brother and I just bought a house and it’s a 5 year interest only loan and the mortgage is close to $ 4000 a month. We are basically having a hard time paying our monthly. Should we refinance already? It’s been only 5 months and there’s a prepayment penalty if we do it before 1 year. Please advise.
Answer by boston857
The prepay means that you cannot refinance for 1-year…..if you already have an interest only product, how will the re-fi on (rate and termsince you will have no equity) help you?….do you think you would get a better rate? Sounds like you are in a house that you cannot afford….
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