Re: Lending rate question
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They obtained the best primary mortgage that they could get, and just took whatever HELOC the broker pushed on them. Then immediately after buying the home, they were able to walk into a bank and get a much better rate on a HELOC. The banks were able to give them a better interest rate and there were no fees to obtain the loan.
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Getting a loan and or refinancing any loan is NOT free. If the fees are not listed on the HUD the bank or broker made money from premium pricing.
Right now rates are low. Shop around and get the best deals you can. Refinancing makes sense only when you can get a good pay back. Example: The total cost added back into your loan is $4000 and your payments go down $200 a month. In 20 months you have recaptured your cost. Keep in mind you don't want to start over with a 30 year mortgage if you have already paid for 15 years.
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