My parent's current mortgage loan is a fixed 20yr loan at a 5.75 interest rate. Unfortunately times haven't been perfect and their credit isn't very good, but the mortgage is always paid even if it's a few days late. Im wondering if it would be possible to take advantage of the current interests rates with a little help. I too have had an early history of bad credit but have been able to save 35K, which I would gladly invest in our home to help lock in a much lower interest rate. Any advice is greatly appreciated. Below I will provide as much helpful info as I can.
1. 530K-1.4M (Various estimating websites such as zillow.com & epraisal.com)
2. 697K (Tax assessed value)
Loan type and term: 20 Years Conventional
Original principal balance: $288,000.00
Contractual remaining term: 10 years, 11 months
Interest rate: 5.75%
Current principal balance: $191,100.79
Total monthly payment: $2,573
Note: My parents rent the basement and 1st floor for a total of $2950 and my father will have a pension in the range of $3500.