Our current mortgage is 8.5 percent. It is so high because the original loan belonged to our parents and they were older when they took it out. We were left the manufactured home on almost 8 acres of privately owned land. We have been making the payments in their names since they both passed away and left the property to us. (My brother and myself. We live together in it) A few years down the line we have swallowed ourselves up with credit card debt, have some student loans, and a vehicle payment. All of those have higher interest rates than the new mortgage, between 5 and 22 % on each.
We have one offer of a conventional refi at 4.75 % for twenty years. But all the points and fees seem exorbitant to me. $1800 in points alone. Plus they want us to have an escrow account for the taxes and insurance. I prefer to pay those myself as it would increase the payment from $516 per month to almost $700 per month. We have managed to keep those things paid by ourselves for far less money.
My credit is average due to all the high interest credit cards I have. My credit to debt ratio is too high. My brother's credit is good at 717, but to them he is technically unemployed since his income is not taxed.
My questions are:
Do those fees seem exorbitant or is it just my inexperience showing?
Would a HELOC be better than a conventional refi? We want to do some repairs and make some improvements on the property, too.
Any advice?
Read more: I am seriously considering a refinance home loan?
