Question by Joe B: refinancing a mortgage?
my wife and I need to refinance our mortgage. Right now the loan is in her ex-husbands name, due to a complicated divorce decree too long to explain now. Bottom line, we need to get a loan for about $ 45,000.
I went to our local credit union. They said our rate would be over 7%, and will send more information. They said that we had poor credit, which we do – my score is about 607, hers is 645.
Should we bother shopping around, or is this as good as it’s gonna get? How much of a real difference will a few percentage points make? 10 points to the best qualified answer!
Answer by John C
At that low of an amount the rate doesn’t make too much of a difference. My rate is 7.35% on a $ 47,000 15 year fixed loan, $ 432 per month. I would pay more attention to the closing costs, shop around and negotiate on those. Some will try to charge you up to $ 4K. I paid $ 2K on my first home, and If I had had more experience I could have most likely knocked it down considerably.
What do you think? Answer below!
As stated, 7% 0n a $ 45,000 loan is no big deal. I suggest that you get a fixed rate open end mortgage which means you can pay down the mortgage anytime without being penalized. On the first half of any loan, you pay about 70% in interest. That’s how most credit unions or banks make their money . Also make sure the credit union or bank belong to the credit bureau.
Your scores are what is keeping that rate as high as it is.. in addition to our lovely economic challenges that are going on. The big question is, is the ex willing to sign for his name to be removed in the refi and NOT asking for some of the funds for himself?