Three years ago I got a 15 year mortgage for this couple at 2.75% interest. They certainly were able to take advantage of the lowest possible rate that was available at the time, but divorce can be a bitch.
These two folks are now getting a divorce and the wife needs to buy out the husband and to make all the math work and end up with an affordable mortgage payment, we need to now do a 30 year mortgage at 4.5%. Having to give up a 2.75% interest rate and go to a mortgage almost 2% higher really sucks, but there is no option. They feel having the children staying in the home is a must.
There will be more of these situations going forward that will require a refinance, from a lower to a higher interest rate. Life will continue to happen and the need to refinance is just part of the living process.
