My wife and I are separating (amicably) and I am / we are in the process of refinancing our house: my wife is not asking for her full half - for now anyway - so that I can stay in the house because the kids are not completely out of school yet.
The house is currently valued at ~$700k, we have roughly half of that in equity, and our rate is currently 5%. She's asked for $125k, so I'd borrow about $480k in the refinancing process. I also have an excellent credit score. What I'm worried about is that the current interest rates are not great, basically we're (well, I am![:-D]( "Very Happy")
) looking at 6%, so a full point above our current loan. And the refinancing deal she's found costs $15k, which she's offered to pay, but it sounds really high.
I was wondering if someone would have some advice for us. I feel like we should shop around, at least to lower the costs (she's offered to pay the $15k, so OK, great, but it'd be better if she had to pay less). I've read in other (recent) threads that there are ways to refinance at zero cost? Is that true? I've never refinanced a home loan before so I'm learning...
Also, if I can't find a better rate now, I guess I can always try to refinance later? What bugs me is that the P+I split is going to reset so I'm going to be stuck paying mostly interest and not much towards principal, and I may not keep the house more than a few years so it's really not ideal but... not sure there's anything else I can do. Thanks in advance for any advice...
The house is currently valued at ~$700k, we have roughly half of that in equity, and our rate is currently 5%. She's asked for $125k, so I'd borrow about $480k in the refinancing process. I also have an excellent credit score. What I'm worried about is that the current interest rates are not great, basically we're (well, I am
) looking at 6%, so a full point above our current loan. And the refinancing deal she's found costs $15k, which she's offered to pay, but it sounds really high.I was wondering if someone would have some advice for us. I feel like we should shop around, at least to lower the costs (she's offered to pay the $15k, so OK, great, but it'd be better if she had to pay less). I've read in other (recent) threads that there are ways to refinance at zero cost? Is that true? I've never refinanced a home loan before so I'm learning...
Also, if I can't find a better rate now, I guess I can always try to refinance later? What bugs me is that the P+I split is going to reset so I'm going to be stuck paying mostly interest and not much towards principal, and I may not keep the house more than a few years so it's really not ideal but... not sure there's anything else I can do. Thanks in advance for any advice...
Statistics: Posted by Mr_Pyrenees — Mon Oct 07, 2024 4:58 pm — Replies 13 — Views 452