Should I refinance with higher interest rate?

Currently my parent is owning the house and paying month mortgage bill. Our monthly payment as of right now is $1400 monthly and fixed interest rate is 4.475%; the payoff amount(principal) is $82,000. I would like to change the title of the house under my name (I guess buying it from my parent). when doing so, I... show more Currently my parent is owning the house and paying month mortgage bill. Our monthly payment as of right now is $1400 monthly and fixed interest rate is 4.475%; the payoff amount(principal) is $82,000.

I would like to change the title of the house under my name (I guess buying it from my parent). when doing so, I have to refinance it with a 30yrs, fixed interest rate of 5.474%, loan amount(principal) is $88,000. monthly payment is $737.77. the fee settlement for refinance and everything will be act as a gift so there will be no money out of pocket to refinance.

The question is should I refinance?
Update: 1. The reason the payment before refinance is $1400 is because the mortgage originally $126000 and it include the interest charge, escrows, taxes... monthly. 2. after refinance, the monthly payment is $737.77 is because it includes the interest charges and... 3. They said I'm not qualify for 15 years due... show more 1. The reason the payment before refinance is $1400 is because the mortgage originally $126000 and it include the interest charge, escrows, taxes... monthly.

2. after refinance, the monthly payment is $737.77 is because it includes the interest charges and...

3. They said I'm not qualify for 15 years due to my income.
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