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!