Refinancing for seniors

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  #1  
Old 03-24-19, 06:32 AM
Pendragon's Avatar
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Refinancing for seniors

I'm trying to find the best refinance option for my parents..

Both in their mid 70's.
Current mortgage is about 83k, at 7.7% (!)

I'd like to find them a 10-15 year fixed in the 4% range, payments wouldn't change significantly but the interest paid would.

About $3200 a month in combined retirement income, but not other assets.
scores are ~750 (mainly credit cards) and ~550.(mortgage only).
Home really needs some repairs but I'm not sure they would be able to get an FHA 203k
I'd like to avoid applying to half a dozen lenders and tanking what little credit score they have.

Side note, I know when one or both of them passes it will be on me to continue to make the payments as they do not have enough life insurance to cover the mortgage balance. So the lower I can get the payment now the better. It's my understanding that 62+ borrowers only qualify for 15 yr or less mortgages.

Any advice on where to go from here?
 
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  #2  
Old 03-24-19, 09:56 AM
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I would make a call to the current mortgage company.You might be surprised. I checked mine and they would save me about $100 a month. Which is not worth it to me.
Watch your closing costs a low monthly payment could be costly.
 
  #3  
Old 03-24-19, 10:28 AM
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Also watch "points". As noted, start with current lender. They are making money regardless of what they are charging and if they know you are going to shop around, if they're smart, they'll know that giving you say 4-5% is still going to make them money whereas if the mortgage goes elsewhere they'll be making zip.
 
  #4  
Old 03-24-19, 10:33 AM
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Some info here on credit scores and refi's:

https://www.experian.com/blogs/ask-e...s-your-credit/

I noticed it addressed multiple requests in short period if you're "shopping" being treated as a single request. Still could cause a dip, but apparently won't dip more with multiple requests. Will have to have one of our banking pros comment on that.
 
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