Should I refinance my home to a 15 yr mortgage and how does it work?

Question by vlioness: Should I refinance my home to a 15 yr mortgage and how does it work?
I am thinking of refinancing my home to a 15 yr mortgage but would like to know how this works and if its a good idea to do so. I currently owe 65,500 on my home with an interest rate at 6.5 i have about 23 yrs and a couple of months to pay off Not sure if this info is needed but i live in Texas

Best answer:

Answer by bull_rooster_aardvark
You simply go to a bank, tell them you want to refinance. They’ll check you out and quote you the rate and payment. You interest rate is fairly high, but depending on your credit not sure how much it would go down with a refi. Also, you of course have to prove credit and income to get a new loan. There will be a few 1000 in closing costs, and even if your interest rate goes down, your payment will go up by a good chunk (assuming you have a 30 year loan right now) but if you are fairly sure you are staying in the house, and you can swing it I think this is a good idea. Also, if your house is worth more than the old loan, you can probably take money out for other stuff if you want.

What do you think? Answer below!

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