Refinance or just sell our house?

Louvenia
my husband and i bought our first house in 2007. we got the loan for $65, 000, and we owe $62, 000 still. we pay almost $600/month.we would like to lower our payment by maybe refinancing and then maybe selling. would it just be a waste of time and money to refinance? should we just sell? we have had so many problems with this house, all that were covered up when the inspector came. we feel ripped off. we have done a lot of work on it, and made it look better. but it just doesn't seem worth it anymore. any advice would be helpful :]

Lady
Do the math to see what the best option is. See what refinancing will cost you and how much your monthly payment would go down. Then figure out your break even point.For example, if you have a $65K loan, 30 year, 6.5% fixed your monthly principal and interest payment is $410. If you go to a $62K, 30 year, 5% loan your principal and interest payment goes to $333. If it costs you $3500 in closing costs to refinance then it will take you 45 months just to break even on what the refinance "saved" you each month. If you're not going to be in the house for at least 4 more years then it would actually cost you to refinance and you'd be better off sticking with your current loan and selling within the next 45 months.

Annalisa
Either way it costs money, and most likely more than the equity you have in the home. I suggest you sit tight for awhile. Refinancing could be an option depending on how much it costs you. If you will increase the mortgage balance, then no I wouldn't do it. You've most likely lost some equity due to the state of the real estate market. It may not even appraise for what you owe.

Nenita
if you sell, what are your other options?your mortgage should be no more than $320 a mo.find out why it is higher than that. YOU should be able toget a mortgage at 4.8%, fixed rate. re the condition of the house, did you have it inspected prior to buying it?have you considered buying an Ameican Home Shield insurancepolicy to help mitigate against your repair/replacement costs?

Kenda
Look at the option of refinancing. Call CHASE they are a good bank - dont go to a broker. They can give you options and see how much your payment would be - Good luck.