I would tell them that family and money dont mix well. If they dont need the money, maybe a gift or something would be better. I know that sounds crazy, but a interest free loan for “a few months” is basically that, a gift.

Also, I am an ass, but shouldnt these people have $$$ incase of emergencies like this? Ok so they need to refi cause the loan adjusted. They should have 6 months of cash sitting around to live off till they get the correct adjustment. If they dont, or they waited till it was all gone like an idiot, then it is alot more risky than they let on. Refi’s shouldnt take “a few months”, especially if things are really ok and there will be “plenty of money”.

I guess all this rambling is to say that I have a feeling that someone isnt being honest with either themselves or their family. They prob want to do a cash out refi to a new teaser rate to keep the party going for another 2 year stretch. Sounds like disaster to me.