I am in the process of refinancing on a home loan which will lower my monthly payments by about $300.00/month. This is a 5 yr ARM, 2.5 interest rate and I plan on selling home in the next 4-5yrs. During the process I found out I have a second lien which has to be paid in the amount of 7k before financing. I also have closing cost of $4500.00 that will be added on to the loan and paid off. At this point, is it worth it to refinance if I have to pay 7k prior to closing? Also, if I don't pay it now, I will eventually have to pay it whenever I decide to sell the house. I hope this is clear. Thanks!
Added (1). My current interest rate is 4.5. Its a 30yr FHA and I am 5 yrs into it. New loan term would be 30 yr as well.
Read more: Refinancing…to do it or not?
