If he wants to stay and has equity he can. Here’s how: He does a cash out refi and pulls out 10 to 20 K to pay 2 to 4 points which reduces his rate drmatically. I just heard about someone getting a 10/1 I/O loan at 6% which converts in 10 years to a 30 year fixed at 6%. Not sure whether it amortizes over 20 years or another 30 years but they paid about 2.5 points to get this. With equity there are always options, IF YOU WANT TO STAY!
