Since you have already closed on your construction loan, your cheapest option will be to "recast" with your current lender. If that is really available-make sure you ask that they are recasting which should give you a better rate and should not carry too much in closing costs.
If you have to actually refinance your typical payback is about 3-5 years depending on the rate and costs. Shopping around is your best option as mentioned earlier, but your closing costs are going to be very similar to a new mortgage. Your current lender might be your best option. Good luck, Jim Mellen
If you are locked in on your rate then you will have to switch lenders. However, you should be looking at a rate closer to 5% than one at 7%.
You will need to incur a new set of closing costs but for a 2% annual rate savings, you will recapture that in no time.
If you have any questions, please feel free to contact me.
Apply Online: flagstarloans.com/lallison
Shop around when you refinance to make sure you get the best deal.
You will likely lower your payments considerably. Make sure you don't have any pre-payment penalty on your current loan. If not, then go ahead and shop around to get the best deal on your refinance. If you need a lender recommendation, call me! (I don't think we are supposed to throw the names out here).
Liz Moore and Associates
I would speak with a mortgage broker and see what your options are, as the bank may not want to refinance it since they already have you for 7%
I am a mortgage broker. If I can be of service, please let me know!
877-238-6324 Ext 704