Q &A with Dottie: Is My 6% Interest Rate Too High?

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I bought a home 5 years ago. My interest rate is 6% and I think it is rather high. How do I know if it makes sense to refinance? Is there a way to calculate my savings for each payment? What is the going rate currently? We have a 30 year fixed mortgage and closed on our home in 2009.
 
That depends on how much money you owe on your mortgage and the closing costs to refinance.  On a relatively small loan it most likely will not pay.  If your loan amount exceeds $200,000 then you can recoup the costs to refinance in a relatively short period with 30 year rates around 4.25%
 
I have some major renovations we need to make in our air conditioning and duct work throughout the house as we have old air handlers and they all need to be replaced as there is mold growing, etc. Is there a way to get some sort of loan to pay this? Are there renovation loans, or loans for a specific value for home repairs? It is a very expensive job (around $10,000) and my husband and I can't just pay them 10K. We need to get the work done or we can't use our AC system.
 
Renovation loans are an expensive option for only a $10,000 job.  If you have sufficient equity in your property, then a Home Equity loan is a better option.
 
Are there any cons to taking a 5:1 or 7:1 loan? The rates are more desirable now, but is the only risk that in 5 or 7 years you don't know where your rate will adjust to? I am trying to decide which loan is right for us. Any pointers?
 
That all depends on what your plans are for staying in the home.  If you plan on moving/selling after 5 or 7 years then those products are a great option.  If you don't have a plan to sell/move, then those rates can adjust by up to 2% per year after the initial fixed period.  If you're not sure what the long term plan is, then play it safe with a fixed rate.
 
What is private mortgage insurance and when is it necessary? I had never even heard of it and recently someone mentioned that they had it, and I am unsure what it does.
 
Private mortgage insurance is an insurance payment (protects the lender in case of default) that is required when you have less than 20% equity (down payment).  The less you put down the more expensive the Private Mortgage Insurance payment becomes.
 
Is there a grace period on some mortgage payments? My husband and I were away and apparently we thought our electronic payment went through but it didn't. So we just re-paid, but it is technically 2 weeks past the due date. Can we be penalized? Is there a period where they will look the other way, especially since we just paid?
 
Call your lender immediately to let them know what happened.  Mortgage payments are due on the 1st of the month, but generally have until the 15th to pay without penalty.  If payment is not received by the end of the month the lender will most likely consider you 30 days late on your mortgage.