Should my 69year old mom refinance?????????

Question

Hi

My mother (69yrs old working lpn) is refinancing her ARM with a fixed rate with Wells Fargo. When she refinance will she loose the equity in her home. She thinking about selling her home when she retires next year(Az or CA). Do you think its a good idea to refinance or sale. I'm worried for my mom please help.

P.S the bank told her the charge is 6000.00 to refinance.

My mom is thinking about move to az or ca .

Answer 1

If she will definately be moving within a year - I would leave it as is. If she does plan on staying a while, I would refinance for a fixed rate to guarentee she can afford the payments!

Answer 2

She will lose the equity only if she borrows more than she currently owes on it. She should not refinance if she plans on selling her home next year. That would be giving away more equity. $6,000 is outrageous! Wells Fargo is a sub-prime lender for people with bad credit. Their fees are horid because they know you can't shop around. Have her keep the mortgage she has!

Answer 3

Are you saying she has only $6,000 in equity? That's not good at all. Selling costs about 10% when you figure in excise tax, realtor fees and closing costs.

have her sit tight for a year-- hopefully the market goes up enough that she can sell and break even.

and btw-- $6K is A LOT to pay for a refi.

Answer 4

6000 sounds very high. have her shop the refi around to a mortgage broker.

Answer 5

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i think your mom should do whatever floats her boat however why don't you ask my boss JOE @ www.lennoxloans.com he knows everything about real estate and loans and mortgages and womens needs AND he is very honest and smart and REAL TELL HIM TISH SENT YOU
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