Well, we are going to refinance the house, but I am confused (well not we, my mom is)

First, we obviously want to refiannce, but we want to take out extra money to pay off the home equity line and a credit card. How does this work exactly? Is it just a normal refinance? What kind of "Fees" are involved in refinancing?

Also, from my understanding there is 0-2 points, and each point is basically the percent you pay up front....is this correct?

Thanks, sorry for my noob like questions with this crap.

 

It depends on how much your credit card debt is, but I think it is just a normal refianance.
When you refinance, you basically borrow money from another bank to pay off your existing loan, so you have the option to borrow more and pay off other stuff as well if you qualify. Talk to the loan broker and he/she will be able to figure out how much you need to borrow with the new loan to pay off everything that you want to pay off.

Then with that amount, they will be able to determine what APR they can offer you, and if there is any fee or points associated with it. A point is 1 percent of the amount you borrow. It is possible to find a no point no fee refinance, meaning you don't pay anything out of your pocket. But the APR will be slightly higher than the deal you will get if you pay some fee and point. So you will have to work out the math to see if it is more economical to pay upfront or pay a higher intereste rate over time.

Hope this helps.