What happens when you refinance your mortgage?

Question by kik3_07: What happens when you refinance your mortgage?
So this is the thing, I’m taking over my dads mortgage payment.
He just retired, and I want to take the stress out of him of having to worry about making payment and all that.

I’m 23 years old, so I’m somewhat unexperienced about all this real estate, loans, etc stuff.
We’ve been living here since 1997, but my dad refinance twice already. The last time in 2006.

So that’s my question. What happens when you refinance?
According to my dad he says that everything we had paid before refinancing our home is gone? Is this true? Basically, he says, is like starting from zero?

I understand the purpose of refinancing, like to lower your interest rate, change the loan time, etc.
But I’m confuse about what happens to everything you have paid already prior to refinancing…

Help! Thanks

Best answer:

Answer by Rob
1 you can NOT refi.
#2 Dad can and should refi since rates are
ridiculous low.
#3 u need money to refi or roll it into loan.
#4 all dad paid b4 is principal (not gone)
and interest (all ways gone)
#5 the money saved is from a lower rate.
#6 the house Must reappraised b4 refi .

#7 you want to read these
House buying kit for dummies, Tynsen.
Total money make over,Dave Ramsey
to learn from others dumb mistakes , not
your own.

#8 Dad must have an income to refi.

good knowledge is good luck.

What do you think? Answer below!

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