Saving & Investing

My mortgage company informed me that I am eligible to remortgage my house at a significantly lower rate. If I do it, my monthly mortgage payment will be cut in half, but the drawback is that after the first five years, the mortgage goes to an adjustable rate. I'm worried because of all the bad stuff that has happened since 2008 due to these bad loans and adjustable rates. However, the good news is that I have around $75,000 left on it and I'm pretty sure I will be able to get it all paid off by then. Also, the company rep told me that it would cost around $1500 to remortgage it, but my neighbor's house only cost $250 to remortgage, so I'm worried that there are some things that are not on the up and up, or that it may be some underhanded kind of deal where I find out all these awful things after I sign on the dotted line.

   So, I want to make sure I consider everything carefully and find out everything there is to know. I thought I would start here, since I've gotten some good advice in the past.

What are some kinds of questions should I ask before I agree to such a deal? It's attractive because my payment would go from $1600+ to around $850 and I just got out of grad school and don't have a job yet.

Thanks,

Vonique

I sort of feel the way you do about the whole thing. Something about it that probably isn't as good as it sounds. I'm suspicious by nature (I've saved myself alot of grief because of it, Thank goodness) and I will probably just forget the whole idea.

My main goal is to sell it anyway. It's just too much house for us but I've been waiting for the market to go back up a little. Even if I sold it now I would still get more than I paid for it since we bought it brand new almost ten years ago.

Well, thanks, pinchpenny. I always appreciate and love your advice!

Vonique