3 Comments

1. Chris L says:
   June 2, 2010 at 2:47 am

   Yes, as long as your property appraises and the fees are reasonable.
2. marzycki says:
   June 2, 2010 at 3:25 am

   No you only have one year left on the arm and it should stay low in the next year, think about it. The way the housing market is now rates will be low for a while. I would only refi if I could reduce the rest of the mortgage by 1.5-2%. What is the market value of the home compared to what you owe? You might be better off to keep the loan you have and finish paying off your current mortgage. If the arm is making you nervous you should try to pay a little more on the principle to make it go faster, just say 25.00 to 50.00 more per month. When the arm is paid off, you are used to paying that additional bill every month so just pay a little more on your PRINCIPLE of the main mortgage.We pay 50.00 more per month on the principle of our 30 year so it will be paid off sooner and save us more in the long run, that’s like paying a little more than 1 additional month of mortgage per year and over the period of 10 years it cuts down over 1 year of full mortgage payments.
3. R T says:
   June 2, 2010 at 3:48 am

   I would start looking around now. You have to make sure the appraised value of your home is at least what you finance. With the balance you owe, it’s unlikely you will be able to pay it off before the economy takes off again at which time your interest rate will increase. You could lock in a long term low rate if you act soon. Shop around, don’t panic, you have time now.

   Whatever you do, start paying off the loan aggressively. You can finance for 30 years and pay it off at the 15 year rate (or more). That gives you an opportunity to make a smaller payment if money gets tight.