what's the lowest mortgage a company might refinance for a first trust?

[Anonymous]

We have an elderly relative in assisted living. She still owes about $25,000 on her house, which is worth roughly $90,000. But the interest rate is in the mid-7s, since the last time she took a loan was sometime in the early 1990s.

We're thinking we'd like to rent the house, but it seems silly to keep serving that note, which probably has another 10 years on it. Yet I don't think any bank would actually refi $25,000 to, say, a 15-year mortgage, would they?

Also, she doesn't have any income, so I guess we'd have to cosign. Except the problem there is the Medicaid lookback rules.

Anyone have any experience with this?

[Anonymous]

She doesn't have Social Security? That should be enough to pay monthly on $25K at today's rates.

[Anonymous]

Wouldn't you just be better off buying the house?

[Anonymous]

Anonymous wrote:She doesn't have Social Security? That should be enough to pay monthly on $25K at today's rates.

It would be, but she also has to pay for assisted living.

[Anonymous]

Anonymous wrote:Wouldn't you just be better off buying the house?

Can't afford to pay FMV and she can't sell it to us for less because of the Medicaid lookback rules.

[Anonymous]

Where can I buy a house in the dc area for 90k, I will buy 5.

[Anonymous]

Anonymous wrote:Where can I buy a house in the dc area for 90k, I will buy 5.

It's not in DC. Sorry that wasn't clear.